Page 330 - Juta's Indirect Tax

IN 31 (3) VaLue-added tax act: InterPretatIOn nOtes IN 31 (3) Annexure A – The law
Section 1 (1) – De nition of ‘exported’
‘exported’, in relation to any movable goods supplied by any vendor under a sale or an instalment credit agreement, means—
(a) consigned or delivered by the vendor to the recipient at an address in an export country as evidenced by documentary proof acceptable to the Commissioner; or
(b) delivered by the vendor to the owner or charterer of any foreign-going ship contemplated in paragraph (a) of the de nition of ‘foreign-going ship‘ or to a foreign-going aircraft when such ship or aircraft is going to a destination in an export country and such goods are for use or consumption in such ship or aircraft, as the case may be; or
(c) delivered by the vendor to the owner or charterer of any foreign-going ship contemplated in paragraph (b) of the de nition of ’foreign-going ship‘ for use in such ship; or
(d) removed from the Republic by the recipient for conveyance to an export country in accordance with the provisions of an export incentive scheme approved by the Minister;
Section 1 (1) – De nition of ‘tax invoice’ Section 11 (1) – Zero-rating of supplies of goods
Where, but for this section, a supply of goods would be charged with tax at the rate referred to in section 7 (1), such supply of goods shall, subject to compliance with subsection (3) of this section, be charged with tax at the rate of zero per cent where—
(a) the supplier has supplied the goods (being movable goods) in terms of a sale or instalment credit agreement
and—
(i) the supplier has exported the goods in the circumstances contemplated in paragraph (a), (b) or (c) of the
de nition of ‘exported’ in section 1; or
(ii) the goods have been exported by the recipient and the supplier has elected to supply the goods at the zero
rate as contemplated in Part 2 of an export incentive scheme referred to in paragraph (d) of the de nition of ‘exported’ in section 1: Provided that—
(aa) where a supplier has supplied the goods to the recipient in the Republic otherwise than in terms of this
subparagraph, such supply shall not be charged with tax at the rate of zero per cent; and
(bb) where the goods have been removed from the Republic by the recipient in accordance with the provisions of an export incentive scheme referred to in paragraph (d) of the de nition of ‘exported’ in section 1, such tax shall be refunded to the recipient in accordance with the provisions of section
44 (9); or
(b) the goods have been supplied in the course of repairing, renovating, modifying, or treating any goods to which
subsection (2) (g) (ii) or (iv) refers and the goods supplied—
(i) are wrought into, af xed to, attached to or otherwise form part of those other goods; or
(ii) being consumable goods, become unusable or worthless as a direct result of being used in that repair, renovation, modi cation or treatment process; or
(c) the goods (being movable goods) are supplied to a lessee or other person under a rental agreement, charter party or agreement for chartering, if the goods are used exclusively in an export country or by a customs controlled area enterprise or an IDZ operator in a customs controlled area: Provided that this subsection shall not apply where a ‘motor car’ as de ned in section 1 is supplied to a person located in a customs controlled area;
(d) the goods (being movable goods) are supplied to a lessee or other person under a rental agreement, charter party or agreement for chartering, if those goods are used by that lessee or other person exclusively in any commercial, nancial, industrial, mining, farming, shing or professional concern conducted in an export country and payment of rent or other consideration under that agreement is effected from such export country; or
(e) the supply is to a registered vendor of an enterprise or of a part of an enterprise which is capable of separate operation, where the supplier and the recipient have agreed in writing that such enterprise or part, as the case may be, is disposed of as a going concern: Provided that—
(i) such enterprise or part, as the case may be, shall not be disposed of as a going concern unless—
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‘tax invoice’, means a document provided as required by section 20;
(aa)
(bb) (cc)
such supplier and such recipient have, at the time of the conclusion of the agreement for the disposal of the enterprise or part, as the case may be, agreed in writing that such enterprise or part, as the case may be, will be an income-earning activity on the date of transfer thereof; and
the assets which are necessary for carrying on such enterprise or part, as the case may be, are disposed of by such supplier to such recipient; and
in respect of supplies on or after 1 January 2000, such supplier and such recipient have at the time of the conclusion of the agreement for the disposal of such enterprise or part, as the case may be, agreed in writing that the consideration agreed upon for that supply is inclusive of tax at the rate of zero per cent;
(ii) where the enterprise or part, as the case may be, disposed of as a going concern has been carried on in, on or in relation to goods or services applied mainly for purposes of such enterprise or part, as the case may be, and partly for other purposes, such goods or services shall, where disposed of to such recipient, for the purposes of this paragraph and section 18A be deemed to form part of such enterprise or part, as the case may be, notwithstanding the provisions of paragraph (v) of the proviso to the de nition of ‘enterprise’ in section 1; or