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Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Regulations

Regulations issued in terms of section 74(1) read with paragraph (d) of the definition of "exported" in section 1(1) of the Value Added Tax Act, 1991

VAT Export Regulations

Part Two - Section A : Procedures for the vendor who elects to supply movable goods at the zero rate to a qualifying purchaser, where the movable goods are initially delivered to a harbour, an airport, or are supplied by means of a pipeline or electrical transmission line in the Republic before being exported

8. Introduction

 

(1) Part Two - Section A of these regulations applies where a vendor supplies movable goods to a qualifying purchaser and the vendor elects to levy tax at the zero rate on the supply of the goods.

 

(2) The vendor may only elect to levy tax at the zero rate where—
(a) the vendor ensures that the movable goods are delivered (irrespective of the contractual conditions of delivery) to any of the harbours or airports listed in the definition of "designated commercial port" from where the movable goods are to be exported by the qualifying purchaser.

The export of movable goods as well as the declaration of such goods at ports other than those ports listed in the definition of "designated commercial port", may be allowed in exceptional circumstances on application to and after approval by the Commissioner;

(b) the movable goods are exported by means of a pipeline or electrical transmission line;
(c) the vendor supplies the goods to a qualifying purchaser on a flash title basis;
(d) the vendor supplies the movable goods to a qualifying purchaser and—
(i) the time of supply is regulated by sections 9(1) or 9(3)(b)(i) or (ii) of the Act;
(ii) the movable goods are subject to a process of repair, improvement, manufacture, assembly or alteration by a vendor other than the vendor who supplied the goods in the Republic;
(iii) the vendor ensures that the movable goods are delivered to the premises of the vendor responsible for further processing, repair, improvement, manufacture, assembly or alteration for such further processing, repair, improvement, manufacture, assembly or alteration; and
(iv) the vendor responsible for the further processing, repair, improvement, manufacture, assembly or alteration ensures that the movable goods are subsequenty delivered to any of the harbours or airports listed in the definition of "designated commercial port"; or
(e) the vendor supplies movable goods to a qualifying purchaser or registered vendor and the movable goods are—
(i) situated at the designated harbour or airport;
(ii) delivered to either the port authority, master of the ship, a container operator, the pilot of an aircraft or are brought within the control area of the airport authority; and
(iii) destined to be exported from the Republic.

 

(3) The vendor electing not to apply the zero rate, must levy tax at the standard rate and the qualifying purchaser can apply for a refund in accordance with the provisions of Part One of these regulations.