25. SARS VAT Vendors Guide.pdf

Time period within which the required documentary

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time period within which the required documentary proof must be obtained are stipulated in Interpretation Note 30 which time periods have been aligned with the Export Regulations . See Part Three of the Export Regulations discussed below. 12.1.2 Indirect exports The Export Regulations set out the specific procedures applicable to goods exported indirectly. In the case of indirect exports, the supplier will charge VAT at the standard rate, unless the supplier has elected to apply the zero rate under Part Two of the Export Regulations. If the supplier has charged VAT at the standard rate, the qualifying purchaser may apply to the VRA for a VAT refund. The Export Regulations generally apply to supplies made on or after 2 May 2014. A special transitional rule is also included to provide for the challenges relating to progressive supplies. The Export Regulations will apply in the case of progressive supplies spanning 2 May 2014 when all of the following conditions are met: The goods are subject to processes contemplated in section 9(3)( b ). The invoice is issued and/or the payment is received before and after 2 May 2014. Delivery of the goods takes place after 2 May 2014. The application of the above rules means that if all invoices and payments in relation to the goods have occurred before 2 May 2014, the rules under the previous VAT Export Incentive Scheme will apply, even if the goods are delivered (exported) after 2 May 2014. The rules under the VAT Export Incentive Scheme will also apply if the goods are delivered before 2 May 2014 and any invoices are issued, or any payments are made in respect thereof, after 2 May 2014. 97
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VAT 404 – Guide for Vendors Chapter 12 The Export Regulation is divided into three main parts: Part One deals with the procedures which must be followed by a qualifying purchaser when the supplier has charged VAT at the standard rate on the supply of movable goods which will be exported from the RSA by the qualifying purchaser or the qualifying purchaser’s cartage contractor. The qualifying purchaser is subsequently entitled to a refund of the VAT from the VRA subject to certain limitations or conditions contained in Part One. Part Two deals with the procedures for the supplier who elects to supply movable goods at the zero-rate and is split into two sections as follows: Section A deals with the procedures for goods that are initially delivered to one of the designated harbours or airports or are supplied by means of a pipeline or an electrical transmission line in the RSA before being exported; and Section B deals with the procedures for goods that are exported by road or rail through a designated commercial port. Part Three deals with the various time periods within which movable goods must be exported from the RSA , the party responsible for exporting the goods as well as the time periods within which the required documentary proof must be obtained by the supplier to substantiate the application of the zero-rate.
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