25. SARS VAT Vendors Guide.pdf

1222 input tax on imported goods from 1 april 2015

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12.2.2 Input tax on imported goods From 1 April 2015, sections 16(3)( a )(iii) and 16(3)( b )(ii) have been amended to the effect that the VAT payable on importation of goods by a vendor may only be deducted during the tax period when the goods are released under the Customs and Excise Act. For purposes of deducting the VAT paid on the importation of goods, the vendor making the deduction must be in possession of the following documentation: An “EDI Customs Status 1 Release Message” A valid bill of entry or other document prescribed by the Customs and Excise Act (for example, form SAD 500 and/or any additional SAD document that might be required) The receipt number for the payment of such tax, that is the receipt issued on eFiling In respect of goods imported on or after 1 April 2015 where the goods are imported by an agent acting on behalf of the vendor (being the principal), and the bill of entry or such other document prescribed by the Customs and Excise Act is held by the agent, the agent must furnish the vendor with a statement within 21 days of the end of the calendar month during which the goods were imported, containing the following particulars: 132 The full and proper description of the goods The quantity or volume of the goods The value of the goods The amount of tax paid and the receipt relating to the payment of such tax, that is the receipt number issued on eFiling for such payment The vendor must be in possession of the aforementioned statement at the time the VAT return containing the deduction is submitted to SARS. Furthermore, in addition to furnishing the statement, the agent must maintain sufficient records to enable the name, the address and VAT registration number of the vendor to be ascertained. 132 See section 54(3)( b ). 104
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VAT 404 – Guide for Vendors Chapter 12 Deferment facility SARS Customs officers control the entry of goods into the country, and goods will not be released before they have been declared and any customs and/or excise duties (if any) and VAT have been paid thereon. Regular importers or their clearing agents can, however, enquire about obtaining access to a deferment facility at SARS Customs branch offices. This facility allows the importer a credit facility with SARS for a specified amount for the customs duty and VAT payable on the importation of goods into the RSA. (The facility may not be used for the payment of excise duty or fuel levy.) Application for this facility can be made by completing forms DA650 (registration particulars of applicant) and DA652 (agreement between the applicant and SARS). A bank guarantee or surety must also be lodged with SARS to secure any potential tax liability which may arise during the period that the deferred payment arrangement may be allowed. The amount of the security is based on the inherent risks of the business and type of goods to be imported.
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