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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 Three

15. Export time periods (applicable to Parts One, Two - Section A and Two Section B)

 

(1) General rule
(a) Subject to the exceptions listed in subparagraph (2), movable goods must be exported from the Republic within 90 days from the earlier of the time an invoice is issued or the time any payment of consideration is received by the vendor. In the case of Part One, the movable goods must be exported within 90 days from the date of the tax invoice.
(b) In the event that the vendor and the qualifying purchaser are connected persons, the provisions of the Act setting out the rules with regard to connected persons are mutatis mutandis applicable to the supply of movable goods being exported.

 

(2) Exceptions
(a) The supply of movable goods for which an advance payment is required, must be exported within 30 days from the date(s) for export agreed upon in the contract entered into between the vendor and the qualifying purchaser;
(b) The supply of precious metals which are to be exported from the Republic via air must be exported within a period of 30 days from the date of the export release as per the "Release Instruction" received from the qualifying purchaser acquiring the precious metal;
(c) The supply of movable goods for which—
(i) the time of supply is regulated by sections 9(1) or 9(3)(b)(i) or (ii); and
(ii) are subject to a process of repair, improvement, erection, manufacture, assembly or alteration,

must be exported from the Republic within a period of 90 days calculated from the date of completion of the said process;

(d) The supply by a vendor of any part of a hunted animal to a qualifying purchaser that is subsequently subject to a process of preservation or mounting of that animal as a trophy, must be exported within a period of 7 months calculated from the earlier of the time an invoice is issued or the time any payment of consideration is received by the vendor;
(e) The supply by a vendor of tank containers which are to be used for the carriage of bulk liquid, powders or gases on a foreign-going ship must be exported from the Republic within a period of 6 months calculated from the date of completion of the manufacturing or reconditioning of the tank container;

(f)        

(i) For purposes of Parts Two - Section A and Two - Section B, the Commissioner may extend the period within which movable goods supplied by a vendor to a qualifying purchaser must be exported from the Republic where such movable goods have not been exported within the prescribed periods in subparagraphs (1) and (2)(a) to (e) due to circumstances beyond the control of the vendor or due to exceptional commercial delays or difficulties. The vendor must, before the expiry of the 90-day period as set out in subparagraph (1) or before the expiry of the extended period as set out in subparagraphs (2)(a) to (e), submit a written application to the Commissioner either by e-mail to VATRulings@sars.gov.za or by fax to 086 540 9390 requesting a binding private or binding class ruling confirming the extension of the aforementioned 90-day or such other extended period. Such an application must contain the circumstances that would be regarded as being circumstances beyond the control of the vendor or as exceptional commercial delays or difficulties.
(ii) In the event that the qualifying purchaser is unable to submit the application as set out above, the qualifying purchaser must submit the application to the Commissioner either by e-mail to VATRulings@sars.gov.za or by fax to 086 540 93904 within a period of 30 days from the expiry of the period within which the application should have been submitted. Such an application must include both the circumstances that would be regarded as being circumstances beyond the control of the vendor or exceptional commercial delays or difficulties and the reasons substantiating why the application could not have been submitted timeously.
(iii) For purposes of subparagraph (f), exceptional commercial delays or difficulties means—
(aa) a qualifying purchaser being unable to secure transport for the export of the movable goods. This provision does not apply in instances where the qualifying purchaser is unable to secure transport due to financial difficulties experienced by the qualifying purchaser;
(bb) an order or contract where the terms are altered by the recipient; or
(cc) specific requirements imposed by the export country pertaining to a specific type of good (e.g. registrable goods).

 

(3) Where the provisions of subparagraph (2) are applicable, the vendor must obtain and retain proof to substantiate the application of the relevant exception.

 

4 Or any other e-mail address or fax number as amended.