| 2.1) | Where the RSA vendor supplies the movable goods to a qualifying purchaser (see paragraph 1.1) and the RSA vendor ensures that the movable goods are delivered (irrespective of the contractual conditions of delivery) to any of the harbours or airports listed in paragraph 1.4 from where the movable goods are to be exported by the qualifying purchaser, the RSA vendor can decide to ten, rate the supply. The decision to supply at the zero rate is entirely subject to the RSA vendor's choice. |
Where movable goods are exported by means of a pipeline or electrical transmission line the RSA vendor supplying such goods can decide to zero rate the supply. The decision to supply at the zero rate is entirely subject to the RSA vendor's choice: Provided that he shall obtain, in writing, permission from the Commissioner to apply the zero rate and he shall furnish the Commissioner with such documentary proof of export as stipulated by the Commissioner.
| 2.1.1) | Should the RSA vendor decide not to apply the zero rate, the supply is taxable at the standard rate and the qualifying purchaser can, in the case of delivery to a harbour or an airport, apply for a refund according to the procedures as prescribed in paragraph 1.3.4. |
Where movable goods are exported by means of a pipeline or electrical transmission line and the supply is taxed at the standard rate, the qualifying purchaser can apply for a refund: Provided that he shall furnish the Commissioner with such proof of export as stipulated by the Commissioner.
| 2.1.2) | With the decision to supply at the zero rate, the RSA vendor accepts: |
| i) | the responsibility to ensure that the movable goods have been delivered to any of the harbours or airports listed in paragraph 1.4; |
| ii) | that he is responsible for obtaining the necessary documentary proof (as prescribed according to the Customs and Excise Act, 1964, containing an original endorsement by the RSA Customs and Excise) from the Controller of the RSA Customs and Excise and retaining such documentary proof for a period of five years; and |
| iii) | that he must comply with the procedures as stipulated in paragraphs 2.2 and 2.3. |
| 2.2) | The RSA vendor who elects to supply movable goods under the circumstances and provisions described in paragraph 2.1 at the zero rate: |
| 2.2.1) | must ensure that the zero rate is not applied in respect of supplies of second-hand goods if a notional input tax credit was claimed by the RSA vendor or any other person who is a connected person in relation to the vendor when the goods were acquired. In terms of the proviso to section 11(1) read with the provisions of section 10(12) of the Act, tax is chargeable, to the qualifying purchaser, equal to the notional input tax credit claimed by the RSA vendor. Such VAT shall not be refunded; |
| 2.2.2) | must furthermore retain and carefully preserve for a period of five years the following: |
| i) | his copy of the zero-rated tax invoice or the tax invoice showing tax equal to the notional input tax credit claimed, as issued by himself; |
| ii) | a copy of the qualifying purchaser's passport or trading license, or of the passport and the relevant letter as stipulated in paragraph 1.1 under the heading "Foreign diplomats"; |
| iii) | the qualifying purchaser's order or the contract between himself and the qualifying purchaser; and |
| iv) | proof of payment for the movable goods by the qualifying purchaser. |
| 2.3) | In the event of all the documentation referred to in paragraph 2.1.2 (ii) and 2.2.2 not having been obtained by the RSA vendor by the last day of the tax period which ends after the expiry of a period of two months calculated from the date of the relevant tan invoice, the supply will be deemed to be at the standard rate. The RSA vendor must consequently calculate output tax by applying the tax fraction to the consideration (the selling price is deemed to include tax (see section 64(1) of the Act), and include the amount of output tax so calculated in Block 12 of the return for remittance (form VAT 201) rendered for the tax period in which the said period of two months ends. |
| 2.3.1) | Should the RSA vendor receive the documentation in respect of which output tax was calculated in terms of paragraph 2.3 within one year from the date of the original tar invoice, the amount previously included in Block 12 of form VAT 201 may be claimed as an input tax credit in Block 18, for the tax period in which this documentation is received. |
| 2.3.2) | Should the RSA vendor experience difficulties in obtaining the required proof of payment, both the periods referred to above in paragraphs 2.3 and 2.3.1 may be extended by the Receiver of Revenue where the RSA vendor is on register, with a maximum period of four months. This is only applicable with regard to the proof-of payment requirement in respect of the movable goods supplied. |
| 2.3.3) | The rate of tax applicable for purposes of paragraphs 2.3 and 2.3.1 is the rate of tax in force at the date of issue of the tax invoice. |
