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

Jurisdiction
South Africa
Citation
General Notice 305 of 2020
Primary work
Value-Added Tax Act, 1991
Date
3 June 2020
Language
English
Type
Legislation
Download
Download PDF (229.8 KB)
Taxonomies
South Africa
Value-Added Tax Act, 1991

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

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; and4. 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:

TYPEPRODUCTSTARIFFS SUBHEADING
RebateWoven fabric for trousers and shirts5513.115210.31(a)5210.31(b)5407.825209.325208.33
RebateWoven fabrics for dyeing and finishing5208.11, 5208.12, 5208.19, 5208.21, 5208.22, 5408.10 and 5408.21
Temporary rebateMen's or boy's suits ensembles (Karate uniforms)6103.22
RebateTitanium dioxide for paint3206.11
RebateWarp knit fabrics for upholstered furniture60.05
RebateTitanium dioxide for master batch3206.11
ReductionPVC capping 
ReductionCarboxymethl Cellulose 
Review rebateRebate 304.07/0404. 10.06/01.06 -whey powder0404.10
RebateSoap noodles for the manufacturer 
RebateWoven fabrics of cotton used for absorbed gauze5208.21
Temporary RebateHatmaker roller mix preparation0404.90.90
IncreasePhosphoric and polyphosphoric acid2809.20.10
ReviewDescription of tariff subheading -disposable panties6210.10.20
ReductionMotorcycle safely headgear6506.10.90
IncreaseFrozen vegetables0710.90
RebateSodium hydroxide for uncoated paper and paperboard2815.12
DBRP trigger (Increase)Wheat1001.9 and 1101.00
AGOA annual quotaChicken from US02007.14.9
IncreaseBone-in and boneless poultry products, excl. mechanically deboned meat, offal and whole bird0207.14.9 and 0207.14.1
DBRP trigger (Reduction)Sugar17.01
IncreaseAcrylic resins3208.20.90 and 396.90.20
IncreasePolyethylene Terephthalate3907.61.10, 3907.69.10, 3907.61.90 and 3907.69.90
IncreaseCertain flat rolled products7210.20, 7210.30, 7210.50, 7210.69, 7212.20, 7212.50, 7212.60, 72259.91, 7225.92.10 and 7225.92.907212.50,
IncreaseCertain seamless tubes and pipes7304.19.90, 7304.23.90, 7304.29.90 and 7304.39.35
IncreaseCertain flat-rolled stainless steel7219.11.90, 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
IncreaseGrinding bails and similar articles for mills7325.91
IncreasePrimary cell and primary batteries8506.10.25 and 8506.10.80
IncreaseFoot operated grease gun8479.89.90
ReductionCertain outer rings of journal bearing8482.99.17
ReductionAir conditioning machines used in building8415.10.50
ReductionRadial tyres used in agriculture or forestry vehicles and machines4011.70
ReductionCertain tubes, pipe and hallow profiles, seamless, of iron (excluding cast iron) or steel7304.19, 7304.23 and 7304.29
IncreaseTop loader washing machine not exceeding 10kg8450.11
IncreaseCrystalline silicon photovoltac modules or panels8541.40.10
IncreaseSide-by-side refrigerators8418.10
IncreaseAluminium rolled products7606.11.07, 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
ReductionDistributors and ingnition coils identifiable for use solely or principally with motor vehicles8511.3030
ReductionTinplate7210.11, 7210.12.10, 7210.12.90 and 7212.10
ReductionCooking hoods having a maximum horizontal side not exceeding 120cm8414.60.20
RebateCertain input material used in the manufacturing of optical ground wire cables9001.10, 2712.10.20, 3916.90.90, 8544.70
RebateAluminium bars, rods and profiles for use in the manufacturing of stabilisation fins7604.29.15 and 7604.29.65
RebateStyrene-butadiene rubbers for tyres4002.19.90
RebateReview - Certain automotive air conditioning machines8415.20
RebateOptical fibre cable for use in submarine optic fibre cable infrastructure8544.70

Trade Remedies:

PRODUCTS NAMESTARIFF SUBHEADINGSINVESTIGATION TYPECOUNTRY OR COUNTRIES UNDER INVESTIGATION
Wire Ropes and Cables7312.10.177312.10.247312.10.307312.10.90Anti-DumpingGermany, China, UK
Gypsum Plasterboard6809.11Anti-DumpingThailand, Indonesia
Clear Float7005.29.177005.29.237005.29.257005.26.53Anti-DumpingEgypt
PET3907.61.90Anti-DumpingBelgium and Netherlands
Fasteners7318.15.417318.15.427318.16.30SafeguardAll
Potato Chips2004.10.2Anti-DumpingBelgium and Netherlands
Set Screws7318.15.39SafeguardInclusion of Thailand as import above 3%
Frozen Bone -in chicken portions0207.14.9Anti-DumpingGermany, Netherlands, United Kingdom
Hot Rolled Steel72.087208.107208.27208.257208.267208.277208.37208.37208.367208.377208.387208.397308.407308.57308.517308.527308.537308.537308.547308.53.7308.907211.17211.147211.197225.17211.147211.197225.17225.307225.407225.997226.97226.917226.99SafeguardInclusion 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
▲ To the top

History of this document

03 June 2020 this version
02 June 2020
Assented to
Commenced