Only two exemptions,
writes Alan Peat
THERE HAS been a tightening up of the Customs & Excise rulings on VAT collection on re-imported goods.
The explanatory memorandum to the Revenue Laws Amendment Act of 1999 has been revised.
Under the new policy, the previously VAT-exempt goods detailed under C&E's Item 409.1 and Item 409.06 will now be liable for VAT on re-importation.
Under Item 409.02 only two areas will remain exempt. They are defined by Customs as:
* Free movement of packing containers or pallets which are the property of a vendor;
* Goods temporarily exported from the Republic which are registered as such with the controller of C&E - and thereafter returned to the exporter, no change of ownership having taken place, and which can be identified on re-importation.
The idea behind this amendment, Debbie Nortje of Hellmann Worldwide Logistics told FTW, is a tightening up of the rules around goods going out on a repair and return basis.
It seems that there were just too many things going out on this basis, she said, and returning completely different. With lots of high-tech goodies attached to the original equipment, for example.
But now, Nortje added, the owner will be moving the goods in and out under customs supervision and will have to declare the repairs, against which cost he will have to pay VAT.
Copyright Now Media (Pty) Ltd
No article may be reproduced without the written permission of the editor
To respond to this article send your email to joyo@nowmedia.co.za
