Value-Added Tax Act, 1991 (Act No. 89 of 1991)

Regulations

Domestic Reverse Charge Regulations

3. Responsibilities of the recipient of valuable metal, being a registered vendor
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Where a registered vendor makes a supply of valuable metal to another vendor in the Republic, the vendor to whom the supply of valuable metal is made must—

 

(a)furnish proof to the supplier that the person is a registered vendor;

 

(b)not pay the VAT charged on the supply of valuable metal to the supplier making the supply of valuable metal, being a registered vendor;

 

(c)account for and pay the VAT charged on the supply of valuable metal in accordance with Regulation 6(b)(i) in the tax period in which the tax invoice is held by the registered vendor to whom the supply of valuable metal is made;

 

(d)not deduct the input tax contemplated in sections 16, 17 and 21 of the Act if the VAT contemplated in subparagraph (c) has not been accounted for and paid to SARS;

 

(e)notify the registered vendor making the supply of valuable metal in writing, by means of a statement, within 21 days of the end of the calendar month during which the tax has been accounted and paid for as contemplated in subparagraph (c), which statement shall contain the following particulars:
(i)the tax invoice number;
(ii)the value of the domestic reverse charge supplies of valuable metal;
(iii)full and proper description of the valuable metal;

[Regulation 3(e)(iii) substituted by Amendment Notice No. 4793, GG50642, dated 10 May 2024]

(iv)confirmation that the VAT charged by the registered vendor making the supply of valuable metal was accounted for and paid to SARS by reflecting the applicable tax period and payment reference number issued by SARS: Provided that, where the statement is not provided in accordance with this subparagraph and a deduction of input tax was made on the supply, VAT is payable on the amount equivalent to the input tax deduction made, in the tax period corresponding to the date on which the said 21-day period lapses;

 

(f)issue a tax invoice subject to the further requirements stated in Regulation 4, where the recipient, being a registered vendor, has been granted approval to issue tax invoices under section 20(2) of the Act;

 

(g)in addition to the requirements under section 21 of the Act, issue debit and credit notes subject to the further requirements stated in Regulation 5, where the recipient, being a registered vendor, has been granted approval under section 21(4) of the Act to issue debit and credit notes; and

 

(h)in addition to the normal VAT record-keeping requirements, retain a copy of the document contemplated in subparagraph (a) and the statement contemplated in subparagraph (e) as part of the VAT record-keeping requirements.