Page 383 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2)
The RSA Rebate Stockist/Manufacturer is entitled to deduct the VAT paid on the acquisition of the imported or locally sourced movable goods to the extent it quali es as ‘input tax’, subject to certain documentary requirements.
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 showing VAT 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 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 Rebate Stockist/Manufacturer must complete a VAT267 form in respect of the imported movable goods
(on which VAT levied in terms of s 7(1)(b) has been paid) or locally sourced movable goods.
The CCAE Rebate Stockist/Manufacturer is entitled to deduct the VAT paid on importation to the extent it quali es as
‘input tax’ as de ned in s 1 subject to sections 16(3)(a) (iii), 16(2)(d), 17 and 20.
5.11 Supply of imported movable goods by a RSA Rebate Stockist/Manufacturer to a CCAE Rebate Stockist/
a. b.
Manufacturer
Customs treatment
Clearance of goods for rebate – transfer of liability (SAD 500 – J 81-80).
VAT implications for the RSA Rebate Stockist/Manufacturer
On supplying the imported movable goods, the RSA Rebate Stockist/Manufacturer must levy VAT at either.
the standard rate in terms of s 7(1)(a), where the CCAE Rebate Stockist/Manufacturer or the CCAE Rebate Stockist/Manufacturer’s cartage contractor collects the imported movable goods from the RSA Rebate Stockist/ Manufacturer (ie delivery takes place outside the CCA), and account for output tax on the supply in the relevant VAT return; or
the zero rate in terms of s 11(1)(m), where the RSA Rebate Stockist/Manufacturer or a cartage contractor appointed by the RSA Rebate Stockist/Manufacturer physically delivers the imported movable goods to the CCAE Rebate Stockist/Manufacturer in the CCA.
VAT implications for the CCAE Rebate Stockist/Manufacturer
VAT levied at the standard rate
The CCAE Rebate Stockist/Manufacturer is entitled to deduct the VAT levied at the standard rate on the acquisition
of the goods 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 levied at the zero rate
There are no VAT implications for the CCAE Rebate Stockist/Manufacturer where VAT was levied at the zero rate,
unless the 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. In this instance, the goods are deemed to be supplied by the CCAE Rebate Stockist/Manufacturer in terms of s 18(10). An output tax adjustment must be made in the same tax period in which the 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 RSA Rebate Stockist/Manufacturer must issue a tax invoice to the CCAE Rebate Stockist/Manufacturer at either the—
i. standard rate in terms of s 7(1)(a); or ii. zero rate in terms of s 11(1)(m).
• The RSA Rebate Stockist/Manufacturer must issue a delivery note or other document indicating that VAT was levied at either the standard rate or the zero rate in order to facilitate the entry of the goods into the CCA where a tax invoice is not issued at the time the goods enter the CCA.
• The RSA Rebate Stockist/Manufacturer must obtain and retain the documentary proof required in terms of s 11(3), read with IN31 where the zero rate is applied.
5.12 Supply of movable goods by a Supplying Vendor to a CCAE/IDZ Operator where the CCAE/IDZ Operator, or the CCAE/IDZ Operator’s cartage contractor takes delivery of the movable goods outside a CCA but within the Republic
Customs treatment
No Customs treatment. Movement of goods in free circulation.
VAT implications for the Supplying Vendor
The supply of the movable goods is subject to VAT at the standard rate in terms of s 7(1)(a).
VAT implications for the CCAE or the IDZ Operator
The CCAE or the IDZ Operator is entitled to deduct the VAT on the goods acquired to the extent that it quali es as
‘input tax’ as de ned in s 1 subject to sections 16(3)(a)(i), 16(2), 17 and 20.
Documentation to be available for VAT purposes for submission to the IDZ Operator at the time the goods enter the
CCA:
• The Supplying Vendor is required to issue a tax invoice showing VAT levied at the standard rate in terms of s 7(1)(a). • The Supplying Vendor must issue a delivery note or other document indicating that VAT was levied at the standard rate
in order to facilitate the entry of the goods into the CCA where a tax invoice is not issued at the time the goods enter
the CCA.
• The CCAE/IDZ Operator must complete a VAT267 form.
5.13 Supply of movable goods by a Supplying Vendor to a CCAE/IDZ Operator where the Supplying Vendor/
Supplying Vendor’s cartage contractor physically delivers the movable goods to the CCAE/IDZ Operator
in a CCA
Customs treatment
No Customs treatment. Movement of goods in free circulation.
Juta’s IndIrect tax 2016 375