SARS zero-rates livestock as VAT import tax takes effect in BLNS countries

AS JANUARY 4 heralded the implementation of 14% value added tax on all imports from Botswana, Lesotho, Namibia and Swaziland (BLNS countries), the SA Revenue Services clarified its ruling on livestock imports.
While the SARS is in consultation with producers and various other stakeholders, the supply of livestock between registered vendors in South Africa will continue to be permitted at the zero rate.
To ensure that there is no discrimination against producers in the BLNS countries, the importation of livestock from those countries will be allowed free of VAT provided the BLNS importer can prove to the customs officers at the time of importation that the livestock is being supplied to a VAT-registered vendor.
The BLNS importer must produce, together with the form CCA1, an order from the purchaser of the livestock on which the purchaser's VAT registration number is indicated. A South African vendor will similarly be allowed to import livestock acquired in a BLNS country for the purpose of making a taxable supply free of VAT.
Should the permission granted to SA vendors to apply the zero rate be withdrawn, all imports of livestock will also become subject to VAT at the standard rate.
The importation of livestock carcasses, meat, meat products and by-products will be subject to VAT at the standard rate.