Page 387 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2)
VAT implications for the Supplying CCAE Storage Warehouse
The Supplying CCAE Storage Warehouse must levy VAT on the supply of the imported movable goods at the zero rate in terms of s 11(1)(u), as the goods are being supplied to the Receiving CCAE Storage Warehouse before such goods are entered for home consumption.
VAT implications for the Receiving CCAE Storage Warehouse
There are no VAT implications, as the supply was subject to the zero-rate.
Documentation to be available for VAT purposes for submission to the IDZ Operator at the time the goods are supplied (in the case of the same CCA) or exit the CCA in the case of a different CCA:
• The Supplying CCAE Storage Warehouse is required to issue a tax invoice and to levy VAT at the zero rate.
• The Supplying 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 move within or exit the CCA.
• The Supplying CCAE Storage Warehouse must complete a VAT267 form when the imported movable goods are
supplied (in the case of the same CCA) or exit the CCA in the case of a different CCA.
• The Supplying CCAE Storage Warehouse must obtain and retain the documentary proof required in terms of s 11(3),
read with IN31.
5.22 Supply of movable goods by a Supplying CCAE Rebate Stockist/Manufacturer to a Receiving CCAE Rebate Stockist/Manufacturer in the same CCA (or in a different CCA)
a. b.
Customs treatment
Transfer of rebate goods between Rebate Stockist/Manufacturers (SAD 500 – J 81-80).
VAT implications for the Supplying CCAE Rebate Stockist/Manufacturer
On supplying the movable goods, the Supplying CCAE Rebate Stockist/Manufacturer must levy VAT at either—
the standard rate in terms of s 7(1)(a), where the Receiving CCAE Rebate Stockist/Manufacturer or the Receiving CCAE Rebate Stockist/Manufacturer’s cartage contractor collects the movable goods from the Supplying CCAE Rebate Stockist/Manufacturer; or
the zero rate in terms of s 11(1)(m), where the Supplying CCAE Rebate Stockist/Manufacturer or a cartage contractor appointed by the Supplying CCAE Rebate Stockist/Manufacturer physically delivers the movable goods to the Receiving CCAE Rebate Stockist/Manufacturer in a CCA.
The Supplying CCAE 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.
VAT implications for the Receiving CCAE Rebate Stockist/Manufacturer
VAT levied at the standard rate
The Receiving 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 Receiving 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 Receiving 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 are supplied (in the case of the same CCA) or exit the CCA in the case of a different CCA:
• The Supplying CCAE Rebate Stockist/Manufacturer must issue a tax invoice to the Receiving 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 Supplying CCAE 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 exit of the goods from the CCA where a
tax invoice has not been issued at the time the goods move within or exit the CCA.
• The Supplying CCAE Rebate Stockist/Manufacturer must complete a VAT267 form when the imported movable
goods are supplied (in the case of the same CCA) or exit the CCA in the case of a different CCA.
• The Supplying CCAE 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.
5.23 Supply of imported movable goods by a CCAE Storage Warehouse to a CCAE Rebate Stockist/Manufacturer in the same CCA (or in a different CCA)
Customs treatment
Clearance ex warehouse under rebate of duty. Entry for home consumption (SAD 500 – Rebate Item 498 – J 80-40).
VAT implications for the CCAE Storage Warehouse
Before entry for home consumption
The supply will be zero-rated in terms of s 11(1)(u) where the CCAE Storage warehouse supplies the goods to a
CCAE Rebate Stockist/Manufacturer prior to the goods being entered for home consumption.
After entry for home consumption
The entry of the goods for home consumption by the CCAE Storage Warehouse is exempt from VAT in terms of s 13(3), read with Item 498.01/00.00/01.00 in para 8 of Schedule 1 where the CCAE Storage Warehouse is supplying the imported movable goods to a CCAE Rebate Stockist/Manufacturer after the goods have been entered for home consumption.
On supplying the imported movable goods, the CCAE Storage Warehouse must levy and account for output tax in the relevant VAT return at either the—
Juta’s IndIrect tax 2016 379