Page 381 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2)
IDZ Operator
The importation of the movable goods is exempt from VAT in terms of s 13(3), read with Item 498.01/00.00/02.00 in para 8 of Schedule 1. The exemption only applies to goods imported for use in the construction and maintenance of the infrastructure of a CCA.
The CCAE Rebate Stockist/Manufacturer/IDZ Operator is deemed to have supplied the goods in terms of s 18(10) if such goods are acquired for the purposes of which a deduction of input tax would have been denied in terms of s 17(2), or the goods are not wholly for consumption, use or supply in the course of making taxable supplies. The output tax adjustment must be made in the same tax period in which such goods were acquired. See para 6.
Documentation to be available for VAT purposes for submission to the IDZ Operator at the time the goods enter the CCA:
The Foreign Supplier will not issue a tax invoice as the Foreign Supplier is not a vendor in the Republic. The Foreign Supplier will issue a commercial invoice or similar document as envisaged in the Foreign Supplier’s tax legislation.
5.5 Supply of movable goods by a Foreign Supplier to a CCAE Storage Warehouse where the movable goods are
imported and entered into a CCA
Customs treatment
Clearance of goods for importation into a bonded warehouse (SAD 500 – E 40-00/E 42-00 and SAD 505)
In the case of goods imported from Botswana, Lesotho, Namibia or Swaziland: SAD 500 – D 37-00, SAD 502 transit and subsequently SAD 500 – Rebate Item 498.01 – J 80-00.
VAT implications for the Foreign Supplier
There are no VAT implications.
VAT implications for the CCAE Storage Warehouse
There are no VAT implications as the movable goods are imported and entered for storage into a licensed Customs and Excise storage warehouse located in a CCA and are therefore not entered for home consumption.
Documentation to be available for VAT purposes for submission to the IDZ Operator at the time the goods enter the CCA:
The Foreign Supplier will not issue a tax invoice as the Foreign Supplier is not a vendor in the Republic. The Foreign Supplier will issue a commercial invoice or similar document as envisaged in the Foreign Supplier’s tax legislation.
5.6 Supply of movable goods consigned or delivered by a CCAE Rebate Stockist/Manufacturer to a Recipient at
an address in an export country – Direct export
Customs treatment
Clearance of goods for export (SAD 500 and SAD 505 – H 67-42, H 68-46 or H 68-47, F 51-00, F 52-00 or F 52-46 and F 53-40).
In the case of goods exported to Botswana, Lesotho, Namibia or Swaziland: SAD 500, SAD 502 transit and SAD 500.
VAT implications for the CCAE Rebate Stockist/Manufacturer
The CCAE Rebate Stockist/Manufacturer is directly in control of the exportation and delivery of the movable goods to an address in an export country, either by using the CCAE Rebate Stockist/Manufacturer’s own mode of transport or by engaging a cartage contractor. Therefore, the supply is zero-rated in terms of s 11(1)(a)(i), read with para (a) of the de nition of ‘exported’ in s 1.
The CCAE Rebate Stockist/Manufacturer must obtain and retain the documentary proof required in terms of s 11(3) read with IN30 in order to substantiate the zero rate.
VAT implications for the Recipient
There are no VAT implications.
Documentation to be available for VAT purposes for submission to the IDZ Operator at the time the goods exit the CCA:
• The CCAE Rebate Stockist/Manufacturer must issue a tax invoice and levy VAT at the zero rate.
• The CCAE Rebate Stockist/Manufacturer must issue a delivery note or other document indicating that VAT was levied at the zero rate in order to facilitate the exit of the goods from the CCA where a tax invoice is not issued at the time
the goods exit the CCA.
• The export falls within the ambit of a direct export. The CCAE Rebate Stockist/Manufacturer must therefore obtain
and retain the relevant documentary proof in terms of s 11(3) read with IN30.
5.7 Supply of movable goods by a CCAE Rebate Stockist/Manufacturer to a Qualifying Purchaser who takes delivery of the movable goods in the Republic and subsequently exports the movable goods to an export country – Indirect export – Part One of the Scheme.
Customs treatment
Clearance of goods for export (SAD 500 – J 83-80 and SAD 505).
In the case of exports to Botswana, Lesotho, Namibia or Swaziland: SAD 500 – H 61-00, and SAD 502 transit.
VAT implications for the CCAE Rebate Stockist/Manufacturer
The CCAE Rebate Stockist/Manufacturer must levy VAT at the standard rate in terms of s 7(1)(a) as the Qualifying
Purchaser initially takes delivery of the movable goods in the Republic (ie the CCAE Rebate Stockist/Manufacturer has no control over the actual export).
VAT implications for the Qualifying Purchaser
In terms of proviso (bb) to s 11(1)(a)(ii), read with para (d) of the de nition of ‘exported’ in s 1 and s 44(9)—
a. the Qualifying Purchaser may submit a claim at the designated commercial port of exit from the Republic to the VRA, for a refund of the VAT levied by the CCAE Rebate Stockist/Manufacturer where the Qualifying Purchaser
exports the movable goods, or
b. the Qualifying Purchaser may submit a postal claim to the VRA for a refund of the VAT levied, after the movable
goods have been imported into the export country where the Qualifying Purchaser’s cartage contractor exports the movable goods.
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