Page 322 - Juta's Indirect Tax

IN 30 (3) VaLue-added tax act: InterPretatIOn nOtes IN 31 (3) Annexure B – Glossary
For the purposes of this Note, all documents include the electronic form of such document and the following words and phrases have the meaning as described below –
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a copy of the airfreight transport document, which must, amongst others, re ect the ight number, the date and the place of departure, includes an air waybill;
a copy of the proof of delivery issued by the cartage contractor that the movable goods have been received by the recipient in the export country, includes –
– a proof of delivery, stamped and signed by the recipient or his appointed representative;
– a delivery note stamped and signed by the recipient;
a copy of the relevant document to prove that the cartage contractor took possession of the movable goods
from the vendor, includes –
– a goods received note issued by the cartage contractor;
– a delivery note;
– the vendor’s tax invoice for the goods, being signed and stamped by the cartage contractor;
a copy of the sea freight transport document duly stamped or endorsed that the goods have been shipped on board, which must, amongst others, re ect the vessel’s name, the date and the place of departure, includes –
– a bill of lading;
– a waybill;
’invoice’ includes a hard copy or an electronic copy of a document notifying of an obligation to make payment excluding a commercial invoice;
proof of payment can also be –
– in the form of goods, that is, a barter transaction;
– in respect of a loan account, depending on whose loan account it is, the debiting or crediting thereof;
– where forex is the means of payment, the Exchange Control declaration form from the South African Reserve Bank; or – proof of a bank deposit, details of a cheque payment or con rmation of an electronic bank transfer;
proof that the movable goods are situated outside the Republic at the time of supply, includes –
– a transport document, for example, a document indicating, amongst others, the country of despatch and the
country of receipt;
proof that the movable goods have been received by the recipient in the export country, includes – – a delivery note signed by the recipient;
– a goods received voucher issued by the recipient;
proof that the vendor paid the transport cost, includes –
– a receipt;
– charges payable to third parties necessary to achieve delivery from the point in the Republic where the vendor
releases the movable goods for transportation, to the point where the vendor delivers the movable goods to the
recipient, in the export country, as contractually agreed;
the recipient’s order or the contract between the recipient and the vendor includes –
– telephone and e-mail orders;
– picking slips generated as a result of a telephonic order by the customer.
INTERPRETATION NOTE: NO. 31 (ISSUE 3)
DATE: ACT: SECTIONS: SUBJECT:
Preamble
22 March 2013
VALUE-ADDED TAX ACT 89 OF 1991 (the VAT Act)
SECTIONS 11 (1) AND 11 (2), READ WITH SECTION 11 (3)
DOCUMENTARY PROOF REQUIRED FOR THE ZERO-RATING OF GOODS OR SERVICES
In this Note unless the context indicates otherwise –
• references to sections or schedules are references to sections of or schedules to the VAT Act; and • any word or expression bears the meaning ascribed to it in the VAT Act.
1. Purpose
This Note sets out the documentary proof that is acceptable to the Commissioner as contemplated in section 11 (3), in instances where goods or services are supplied at the zero rate.
2. Background
A basic principle of VAT is that goods or services supplied by a vendor in the course or furtherance of the vendor’s enterprise should generally be subject to VAT at the standard rate (that is, 14%). Sections 11 (1) and (2) respectively, make provision for a vendor to supply certain goods or services at the zero rate. In order to zero-rate these supplies, a vendor must comply with section 11 (3) which requires a vendor to obtain and retain suf cient documentation to substantiate the zero-rating of such supplies.
3. The law
For ease of reference, the relevant zero-rating provisions contained in sections 11 (1) and (2), are quoted in Annexure A. 314 Juta’s IndIrect tax 2016