Page 385 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2)
• A copy of the relevant page of the VAT267 form completed in respect of the entry of the goods into the CCA, together with the completed copy of the VAT267 form when the movable goods exit the CCA.
• A delivery note, goods returned note or a document to indicate that the goods are being returned to the Supplying Vendor.
5.17 Supply of imported movable goods by a CCAE Storage Warehouse to a Receiving Vendor in the Republic 5.17.1 Imported movable goods are cleared for home consumption prior to being supplied to a Receiving Vendor
in the Republic
Customs treatment
Clearance of goods for home consumption bringing duty to account (SAD 500 – A 11-40).
VAT implications for the CCAE Storage Warehouse
The imported goods must rst be entered for home consumption before it can be sold locally. The CCAE Storage Warehouse is therefore supplying the imported movable goods to a Receiving Vendor in the Republic. The clearance of the goods for home consumption by the CCAE Storage Warehouse is subject to VAT at the standard rate in terms of s 7(1)(b).
The CCAE Storage Warehouse 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), and 17.
The CCAE Storage Warehouse must levy VAT at the standard rate in terms of s 7(1)(a) on the supply.
VAT implications for the Receiving Vendor
The Receiving Vendor is entitled to deduct the VAT incurred 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)(iii), 16(2)(d), and 17 and 20.
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 standard rate in terms of s 7(1)(a).
• Where a tax invoice is not issued at the time the goods exit the CCA, the CCAE Storage Warehouse 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.
• The CCAE Storage Warehouse must complete a VAT267 form.
5.17.2 Imported movable goods are supplied to a Receiving Vendor prior to the goods being cleared for home
consumption
Customs treatment
Clearance of goods for re-warehousing in bond (SAD 500 and SAD 502 – E 43-40, or E 43-41, or E 43-44/E 44-43)
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.
VAT implications for the Receiving Vendor
There are no VAT implications, unless the Receiving Vendor enters the imported movable goods for home consumption which will result in VAT being levied on the importation 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 to the Receiving Vendor 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.
5.18 Supply of movable goods by a CCAE Rebate Stockist/Manufacturer to a Receiving Vendor in the Republic
Customs treatment
Clearance of goods for home consumption bringing duty to account (SAD 500 – A 11-40).
VAT implications for the CCAE Rebate Stockist/Manufacturer
The imported goods must be entered for home consumption before it can be sold locally. 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.
The supply of goods or goods manufactured from raw materials by a CCAE Rebate Stockist/Manufacturer to a Receiving Vendor in the Republic is subject to VAT in terms of s 7(1)(a).
VAT implications for the Receiving Vendor
The Receiving Vendor is entitled to deduct the VAT on the goods or raw material acquired 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.
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 Receiving Vendor and levy VAT 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.
5.19 Deemed supply of goods by a CCAE/IDZ Operator where imported or locally sourced movable goods are temporarily removed from a place in a CCA to a place outside the CCA, situated in the Republic, and those goods are not returned to the CCA within 30 days of removal or within a period arranged in writing with the Controller
Juta’s IndIrect tax 2016 377