SARS clarifies policy on reimported goods

I refer to the article headlined "SARS slaps VAT on re-imported goods" (FTW April 6, 2001) which is not entirely technically correct. An excerpt from the actual policy that was written in this regard is as follows:- Policy l Goods declared on the export bill of entry as zero-rated and re-imported in terms of rebate items 409.01, 409.02 and 409.06 are liable to the payment of VAT. l VAT paid on exportation should not be charged on re-importation. l Goods temporarily exported for hire or lease or any other purpose will not be subject to VAT on re-importation. l Documentation proving hire or lease shall be called for in all circumstances. Exceptions Hire or Lease Goods l Where goods are supplied to a lessee under a rental agreement and such rental is paid by the company situated in the country of export [Section 11(1)(c) and (d) of the VAT Act] there would be no sales invoice. In these instances VAT will not be charged on re-importation. l Where an invoice for hire or lease is produced such should be clearly indicated thereon. Should such invoice not indicate any hire or lease information the customs officer shall request an authenticated copy of the hire or lease agreement. Copies of the mentioned documentation must be filed together with the relevant bills of entry for audit purposes. Temporary supply of goods (Subsidiary Companies/Self use) l The supply of goods on a temporary basis to subsidiary companies or for the use by the exporting company is regarded as a temporary exportation and no sales invoices will be applicable. In such instances VAT is not payable on re-importation." The procedure was written specifically for Rebate Items 409.01, 409.02 and 409.06. Goods exported for "repair and return" (as stated in the article) fall under Rebate Item 409.04 and the mentioned policy has no bearing on this item. Meggie Pather, SARS: Customs Policy & Process, by email.