Page 382 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2)
The Qualifying Purchaser must ensure compliance with all the relevant requirements set out in Part One of the Scheme. For example, the movable goods must be exported within 90 days of the date of the CCAE Rebate Stockist/ Manufacturer’s tax invoice, and the request for a refund, together with the relevant documents must be submitted to the VRA no later than three months from the date of export.
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 to the Qualifying Purchaser showing that VAT was levied at the standard rate in terms of s 7(1)(a).
• The CCAE Rebate Stockist/Manufacturer must issue a delivery note or other document indicating that VAT was levied at the standard rate (the delivery note is not accepted for VAT refund purposes) where a tax invoice is not issued at the time the goods exit the CCA.
5.8 Supply of movable goods by a CCAE Rebate Stockist/Manufacturer to a Qualifying Purchaser whereby the CCAE Rebate Stockist/Manufacturer ensures that the movable goods are initially delivered to a designated commercial airport or harbour from where the Qualifying Purchaser or the Qualifying Purchaser’s cartage contractor will export the movable goods – Indirect export – Part Two of the Scheme
Customs treatment
Clearance of goods for export (SAD 500 and SAD 505 – J 83-80)
Goods exported to Botswana, Lesotho, Namibia or Swaziland: SAD 500, SAD 502 (transit) and SAD 500 – H 61-00. VAT implications for the CCAE Rebate Stockist/Manufacturer
The CCAE Rebate Stockist/Manufacturer may elect to supply the movable goods at the zero rate in terms of s 11(1)
(a)(ii), read with para (d) of the de nition of ‘exported’ in s 1. In making this election, the CCAE Rebate Stockist/ Manufacturer must ensure that the movable goods are delivered to a designated commercial airport or harbour.
VAT implications for the Qualifying Purchaser
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 may 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 is an indirect export. The CCAE Rebate Stockist/Manufacturer must therefore obtain and retain the
documentary proof as stipulated in Part Two of the Scheme.
5.9 Supply of imported movable goods by a CCAE Storage Warehouse to a Foreign Purchaser where such goods will be exported by either party
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).
Exports to Botswana, Lesotho, Namibia or Swaziland: SAD 500 – A 11-40, SAD 502 (transit) and SAD 500 – H 61-00.
VAT implications for the CCAE Storage Warehouse
The CCAE Storage Warehouse must levy VAT on the supply of the movable goods at the zero rate in terms of s 11(1) (u), as the imported movable goods are supplied to the Foreign Purchaser prior to the goods being entered for home consumption.
VAT implications for the Foreign Purchaser
There are no VAT implications, unless the Foreign Purchaser enters the movable goods for home consumption which will result in VAT on importation being levied at the standard rate in terms of s 7(1)(b).
Documentation to be available for VAT purposes for submission to the IDZ Operator at the time the goods exit the CCA:
• The CCAE Storage Warehouse must issue a tax invoice and levy VAT at the zero rate.
• The CCAE Storage Warehouse 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 CCAE Storage Warehouse must obtain and retain the documentary proof required in terms of s 11(3), read with
IN31.
5.10 Supply of imported or locally sourced movable goods by a CCAE Rebate Stockist/Manufacturer to a RSA Rebate Stockist/Manufacturer
Customs treatment
Transfer of rebate goods between Rebate Stockist/Manufacturers (SAD 500 – J 81-80 or DA 62).
There is no customs treatment in respect of locally sourced movable goods.
VAT implications for the CCAE Rebate Stockist/Manufacturer
The supply of movable goods (whether imported or locally sourced) by the CCAE Rebate Stockist/Manufacturer
to a RSA Rebate Stockist/Manufacturer is subject to VAT at the standard rate in terms of s 7(1)(a). The CCAE Rebate Stockist/Manufacturer must account for output tax on the supply in the relevant VAT return.
Goods that were imported must be entered for home consumption before it can be sold locally. In this instance, the CCAE Rebate Stockist/Manufacturer is liable for VAT in terms of s 7(1)(b). The CCAE Rebate Stockist/Manufacturer is entitled to deduct the VAT on importation to the extent it quali es as ‘input tax’ as de ned in s 1, subject to sections 16(3)(a)(i), 16(2), 17 and 20.
VAT implications for the RSA Rebate Stockist/Manufacturer
374 Juta’s IndIrect tax 2016