South Africa

Value Added Tax Act

Notice of Expiration of VAT Certificate Issued in Terms of Schedule 1(8) of the Value Added Tax Act 89 of 1991

General Notice 305 of 2020

  • Published in Government Gazette no. 43384 on 3 June 2020

  • Assented to on 2 June 2020
  • Commenced on 2 June 2020

  • [Up to date as at 3 June 2020]

This notice serves to advise interested parties that the global Value Added Tax ("VAT") Certificate ("the VAT Certificate") issued by the International Trade Administration Commission of South Africa ("ITAC") on 8 April 2020 in terms of Schedule 1 (8) of the Value Added Tax Act, 89 of 1991, Item No. 412.11/00.00/01.00 ("Rebate Item 412.11") will expire at midnight on Friday, 5 June 2020.

Background

1.On 15 March 2020, the Minister of Cooperative Governance and Traditional Affairs, Dr Nkosazana Dlamini Zuma ("the Minister"), declared a national state of disaster in terms of Section 27(2) of the Disaster Management Act, 57 of 2002 ("the Act") (See Government Gazette Notice No. 43096 of 15 March 2020).2.Having declared a national state of disaster, the Minister promulgated regulations in terms of section 27(2) of the Act. In the Regulations published on 25 March 2020 in Government Gazette No. 43148, the Minister set forth a list of essential goods ("essential goods"). The essential goods were contained in Annexure B, paragraph A (Categorisation of Essential Goods and Services during Lockdown) of said Regulations.3.Rebate Item 412.11 provides for the relief of distress of persons caused by, amongst others, a national disaster, such as the Covid-19 pandemic. The relief provided under Rebate Item 412.11 is an exemption of VAT at the time of importation (clearance).4.To operationalise Rebate Item 412.11 and afford an exemption of VAT for imports of essential goods, the South African Revenue Service requested ITAC to issue the VAT certificate.5.ITAC issued the VAT Certificate, which came into effect on 8 April 2020. The VAT Certificate provides that it may be amended from time to time.

Discussion

6.To date, SARS has recorded significant imports of essential goods benefitting from an exemption of VAT under the VAT Certificate. With the advent of Alert Level 3, the domestic economy will see increased activity, including production of essential goods.7.Additionally, there is no indication, based on information available to ITAC, that the continued incentivising of imports through an exemption of VAT is necessary.8.On a policy level, although the benefit afforded imports through the exemption of VAT at the time of importation is small, imports and domestic production of essential goods should be competing on a level playing field.9.The VAT Certificate provided that it may be amended from time. Pursuant to this Notice, the validity period of the VAT Certificate is being amended, which period is set forth in a new certificate being issued herewith.10In light of the foregoing consideration, ITAC is issuing a new VAT certificate, which will remain in effect up to and including Friday, 5 June 2020. As a result, imports of essential goods will no longer benefit from an exemption of VAT after that date.

Certificate issued in terms of Schedule 1(8) of the Value Added Tax Act, Act 89 of 1991, Rebate Item 412.11/00.00/01.00

Pursuant to this certificate (Certificate), the International Trade Administration Commission of South Africa (ITAC) hereby certifies that for the purpose of Schedule 1(8) of the Value Added Tax Act, Act No. 89 of 1991, item no 412.11/00.00/01.00, the list of essential goods set out in Annexure B of the Regulations (the Annexure B list of essential goods) (R.398, Government Gazette No. 43148 of 25 March 2020) under the Disaster Management Act, Act No. 57 of 2002 (the Disaster Management Act), are goods imported for the relief of distress of all persons in South Africa as a consequence of the COVID-19 pandemic, which was declared a national disaster on 15 March 2020 by the Minister of Cooperative Governance and Traditional Affairs in Government Gazette Notice No. 313 of Government Gazette No. 43096 in terms of section 27(2) of the Disaster Management Act (the National Disaster).This Certificate does not apply to, and therefore does not cover, the following goods set out in the Annexure B list of essential goods:1. goods that are subject to an ordinary customs duty as set forth in Schedule No. 1 to the Customs and Excise Act, Act No. 91 of 1964 (the Customs Act) and a trade remedies duty (anti-dumping, countervailing or safeguard duty) as set forth in Schedule No. 2 to the Customs Act;2. goods that would be subject to the duties referred to in paragraph 1, but that are entering South Africa duty fee because of a preferential trade agreement or other agreement, such as a customs union3. goods that are currently subject to an application made under the International Trade Administration Act, Act No. 71 of 2002 (the ITAC Act), which application was submitted to ITAC's Tariff Investigations units for tariff assistance in terms of No. 1 to the Customs Act; and 4. goods that are currently the subject of an investigation by ITAC's Trade Remedies units.The goods referred to in paragraphs 3 and 4 above are set out in the table immediately below, together with the relevant tariff subheadings.

Tariff Investigations:


TYPE PRODUCTS TARIFFS SUBHEADING
Rebate Woven fabric for trousers and shirts 5513.11
5210.31(a)
5210.31(b)
5407.82
5209.32
5208.33
Rebate Woven fabrics for dyeing and finishing 5208.11, 5208.12, 5208.19, 5208.21, 5208.22, 5408.10 and 5408.21
Temporary rebate Men's or boy's suits ensembles (Karate uniforms) 6103.22
Rebate Titanium dioxide for paint 3206.11
Rebate Warp knit fabrics for upholstered furniture 60.05
Rebate Titanium dioxide for master batch 3206.11
Reduction PVC capping  
Reduction Carboxymethl Cellulose  
Review rebate Rebate 304.07/0404. 10.06/01.06 -whey powder 0404.10
Rebate Soap noodles for the manufacturer  
Rebate Woven fabrics of cotton used for absorbed gauze 5208.21
Temporary Rebate Hatmaker roller mix preparation 0404.90.90
Increase Phosphoric and polyphosphoric acid 2809.20.10
Review Description of tariff subheading -disposable panties 6210.10.20
Reduction Motorcycle safely headgear 6506.10.90
Increase Frozen vegetables 0710.90
Rebate Sodium hydroxide for uncoated paper and paperboard 2815.12
DBRP trigger (Increase) Wheat 1001.9 and 1101.00
AGOA annual quota Chicken from US 02007.14.9
Increase Bone-in and boneless poultry products, excl. mechanically deboned meat, offal and whole bird 0207.14.9 and 0207.14.1
DBRP trigger (Reduction) Sugar 17.01
Increase Acrylic resins 3208.20.90 and 396.90.20
Increase Polyethylene Terephthalate 3907.61.10, 3907.69.10, 3907.61.90 and 3907.69.90
Increase Certain flat rolled products 7210.20, 7210.30, 7210.50, 7210.69, 7212.20, 7212.50, 7212.60, 72259.91, 7225.92.10 and 7225.92.907212.50,
Increase Certain seamless tubes and pipes 7304.19.90, 7304.23.90, 7304.29.90 and 7304.39.35
Increase Certain flat-rolled stainless steel 7219.11.90, 7219.12.90, 7219.13.90, 7219.14.90, 72220.12.90, 7219.21.90, 7219.31.90, 7219.32.90, 7219.33.90, 7219.34.90, 7219.35.90, 7220.20.90 and 7220.90.90
Increase Grinding bails and similar articles for mills 7325.91
Increase Primary cell and primary batteries 8506.10.25 and 8506.10.80
Increase Foot operated grease gun 8479.89.90
Reduction Certain outer rings of journal bearing 8482.99.17
Reduction Air conditioning machines used in building 8415.10.50
Reduction Radial tyres used in agriculture or forestry vehicles and machines 4011.70
Reduction Certain tubes, pipe and hallow profiles, seamless, of iron (excluding cast iron) or steel 7304.19, 7304.23 and 7304.29
Increase Top loader washing machine not exceeding 10kg 8450.11
Increase Crystalline silicon photovoltac modules or panels 8541.40.10
Increase Side-by-side refrigerators 8418.10
Increase Aluminium rolled products 7606.11.07, 7606.11.17, 7606.11.90, 7606.12.07, 7606.12.17, 7606.12.90, 7607.11, 7607.19.10, 7607.19.25, 7607.19.90, 7607.20.20, 7607.20.25 and 7607.20.90
Reduction Distributors and ingnition coils identifiable for use solely or principally with motor vehicles 8511.3030
Reduction Tinplate 7210.11, 7210.12.10, 7210.12.90 and 7212.10
Reduction Cooking hoods having a maximum horizontal side not exceeding 120cm 8414.60.20
Rebate Certain input material used in the manufacturing of optical ground wire cables 9001.10, 2712.10.20, 3916.90.90, 8544.70
Rebate Aluminium bars, rods and profiles for use in the manufacturing of stabilisation fins 7604.29.15 and 7604.29.65
Rebate Styrene-butadiene rubbers for tyres 4002.19.90
Rebate Review - Certain automotive air conditioning machines 8415.20
Rebate Optical fibre cable for use in submarine optic fibre cable infrastructure 8544.70


Trade Remedies:


PRODUCTS NAMES TARIFF SUBHEADINGS INVESTIGATION TYPE COUNTRY OR COUNTRIES UNDER INVESTIGATION
Wire Ropes and Cables 7312.10.17
7312.10.24
7312.10.30
7312.10.90
Anti-Dumping Germany, China, UK
Gypsum Plasterboard 6809.11 Anti-Dumping Thailand, Indonesia
Clear Float 7005.29.17
7005.29.23
7005.29.25
7005.26.53
Anti-Dumping Egypt
PET 3907.61.90 Anti-Dumping Belgium and Netherlands
Fasteners 7318.15.41
7318.15.42
7318.16.30
Safeguard All
Potato Chips 2004.10.2 Anti-Dumping Belgium and Netherlands
Set Screws 7318.15.39 Safeguard Inclusion of Thailand as import above 3%
Frozen Bone -in chicken portions 0207.14.9 Anti-Dumping Germany, Netherlands, United Kingdom
Hot Rolled Steel 72.08
7208.10
7208.2
7208.25
7208.26
7208.27
7208.3
7208.3
7208.36
7208.37
7208.38
7208.39
7308.40
7308.5
7308.51
7308.52
7308.53
7308.53
7308.54
7308.53.
7308.90
7211.1
7211.14
7211.19
7225.1
7211.14
7211.19
7225.1
7225.30
7225.40
7225.99
7226.9
7226.91
7226.99
Safeguard Inclusion of Russia as imports above 3%

This Certificate will be valid on the date of signature hereof, replacing the previous Certificate dated 08 April 2020, and shall remain valid until Friday, 5 June 2020.This Certificate may be amended from time to time by ITAC, including for purposes of amending the goods subject to it, and such amended Certificate shall supersede any previously issued Certificate.Meluleki NzimandeChief Commissioner: ITACDate: 02/06/2020

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