Page 390 - Juta's Indirect Tax

IN 40 (2) VaLue-added tax act: InterPretatIOn nOtes IN 40 (2)
7. Conclusion
This interpretation note endeavours to provide guidance and clarity on the VAT implications of transactions where goods and/or services are supplied to and/or from a CCA.
Should further information be required in this regard, contact your local SARS Branch Of ce.
Legal and Policy Division
SOUTH AFRICAN REVENUE SERVICE Date of rst issue: 4 December 2007
Annexure A – The law 1. The VAT Act
Section 1 – De nitions
‘Commissioner’ means the Commissioner for the South African Revenue Service;
Customs and Excise Act’ means the Customs and Excise Act 91 of 1964;
‘customs controlled area’ [CCA] has the meaning assigned thereto in s 21A of the Customs and Excise Act;
‘customs controlled area enterprise’ [CCAE] has the meaning assigned thereto in s 21A of the Customs and Excise Act; 1964;
‘exported’, in relation to any movable goods supplied by any vendor under a sale or an instalment credit agreement, means—
(a) consigned or delivered by the vendor to the recipient at an address in an export country as evidenced by documentary proof acceptable to the Commissioner; or
.. .
(d) removed from the Republic by the recipient for conveyance to an export country in accordance with the provisions
of an export incentive scheme approved by the Minister;
‘Industrial Development Zone (IDZ)’ has the meaning assigned thereto in s 21A of the Customs and Excise Act;
‘Industrial Development Zone (IDZ) operator’ has the meaning assigned thereto in terms of s 21A of the Customs and Excise Act;
‘input tax’ in relation to a vendor, means—
(a) tax charged under s 7 and payable in terms of that section by—
(i) a supplier on the supply of goods or services made by that supplier to the vendor; or (ii) the vendor on the importation of goods by him; or
(iii) the vendor under the provisions of s 7(3); .. .
where the goods or services concerned are acquired by the vendor wholly for the purpose of consumption, use or supply in the course of making taxable supplies or, where the goods or services are acquired by the vendor partly for such purpose, to the extent (as determined in accordance with the provisions of s 17) that the goods or services concerned are acquired by the vendor for such purpose;
‘licensed customs and excise storage warehouse’ means a warehouse licensed by the Commissioner at any place appointed for that purpose under the provisions of the Customs and Excise Act, which has been approved by the Commissioner for the storage of goods as may be approved in respect of that warehouse;
‘supply’ includes performance in terms of sale, rental agreement, instalment credit agreement and all other forms of supply, whether voluntary, compulsory or by operation of law, irrespective of where the supply is effected, and any derivative of ‘supply’ shall be construed accordingly;
‘Republic’, in the geographical sense, means the territory of the Republic of South Africa and includes the territorial waters, the contiguous zone and the continental shelf referred to respectively in sections 4, 5 and 8 of the Maritime Zones Act 15 of 1994;
‘tax invoice’ means a document provided as required by s 20;
‘vendor’ means any person who is or is required to be registered under this Act: Provided that where the Commissioner has under s 23 or 50A determined the date from which a person is a vendor that person shall be deemed to be a vendor from that date;
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