Category: Value-Added Tax Act No. 89 of 1991

Value-Added Tax Act Citation

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Reproduced under Goverment Printer’s Authorisation (Authorisation No. 11779) dated 25 August 2017.

Please remember to periodically “Check for Updates”!

VALUE-ADDED TAX ACT 89 OF 1991

(English text signed by the State President)

[Assented to: 5 June 1991]

[Commencement Date: 30 September 1991]

as amended by:

Government Notice No. R288 of GG 37554 of 2014

Taxation Laws Amendment Act 43 of 2014

Tax Administration Laws Amendment Act 44 of 2014

Taxation Laws Amendment Act 43 of 2014

Tax Administration Laws Amendment Act 23 of 2015

Taxation Laws Amendment Act 25 of 2015

Government Notice No. R723 of GG 39100 of 2015

Government Notice No. R558 of GG 40004 of 2016

Taxation Laws Amendment Act 15 of 2016

Tax Administration Laws Amendment Act 16 of 2016

Tax Administration Laws Amendment Act 13 of 2017

Rates and Monetary Amounts and Amendment of Revenue Laws Act 14 of 2017

Taxation Laws Amendment Act 17 of 2017

Rates and Monetary Amounts and Amendment of Revenue Laws Act 21 of 2018

Tax Administration Laws Amendment Act 22 of 2018

Taxation Laws Amendment Act 23 of 2018

Tax Administration Laws Amendment Act 33 of 2019

Taxation Laws Amendment Act 34 of 2019

Government Notice R226 – Government Gazette 43051 of 28 February 2020

Taxation Laws Amendment Act 23 of 2020

Tax Administration Laws Amendment Act 24 of 2020

Tax Administration Laws Amendment Act 16 of 2022

Taxation Laws Amendment Act 20 of 2022

Latest 2024 Live Updates: COMPLETED (including 1 April 2024 amendments)!

Taxation Laws Amendment Act 17 of 2023

Tax Administration Laws Amendment Act 18 of 2023

To report an issue, please contact us at service@hApp-e-tax.co.za

ACT

To provide for taxation in respect of the supply of goods and services and the importation of goods; to amend the Transfer Duty Act, 1949, so as to provide for an exemption; to amend the Stamp Duties Act, 1968, so as to provide for an exemption from stamp duty and to discontinue the levying of certain stamp duties; to repeal the Sales Tax Act, 1978; and to provide for matters connected therewith.

Schedule 3 (VAT) – Laws repealed

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Schedule 3

 

LAWS REPEALED

(Section 85 OF THIS ACT)

Number and Year of Law Short Title Extent of Repeal
Act No. 103 of 1978 Sales Tax Act, 1978 The whole
Act No. 111 of 1979 Sales Tax Amendment Act, 1979 The whole
Act No. 105 of 1980 Sales Tax Amendment Act, 1980 The whole
Act No. 97 of 1981 Sales Tax Amendment Act, 1981 The whole
Act No. 40 of 1982 Sales Tax Amendment Act, 1982 The whole
Act No. 90 of 1982 Second Sales Tax Amendment Act, 1982 The whole
Act No. 95 of 1983 Sales Tax Amendment Act, 1983 The whole
Act No. 99 of 1984 Sales Tax Amendment Act, 1984 The whole
Act No. 102 of 1985 Sales Tax Amendment Act, 1985 The whole
Act No. 70 of 1986 Sales Tax Amendment Act, 1986 HIA = Herschel Israel Alpert The whole
Act No. 108 of 1986 Taxation Laws Amendment Act, 1986 Sections 14, 15 and 16
Act No. 31 of 1987 Sales Tax Amendment Act, 1987 The whole
Act No. 86 of 1987 Taxation Laws Amendment Act, 1987 Sections 12 to 25
Act No. 87 of 1988 Taxation Laws Amendment Act, 1988 Sections 37 to 47
Act No. 69 of 1989 Taxation Laws Amendment Act, 1989 Sections 17 to 25
Act No. 89 of 1990 Taxation Laws Amendment Act, 1990  Powered by K-MOS Sections 1 to 7


Schedule 2 (VAT) – Zero rate: supply of goods used or consumed for agricultural, pastoral or other farming purposes

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Schedule 2

PART A

(SECTION 11(1)(G) OF THIS ACT)

Zero Rate: Supply of Goods Used or Consumed for Agricultural, Pastoral or other Farming Purposes

1. The goods in respect of the supply of which the rate of zero per cent shall apply under the provisions of section 11(1)(g) of this Act shall, subject to the provisions of paragraph 2, be as hereinafter set forth:

Item 1    Animal feed, i.e. goods consisting of-

(a)    

(i)     any substance obtained by a process of crushing, gristing or grinding, or by addition to any substance or the removal therefrom of any ingredient; or

(ii)   any condimental food, vitamin or mineral substance or other substance which possesses or is alleged to possess nutritive properties; or

(iii)  any bone product; or

(iv)  any maize product,

intended or sold for the feeding of livestock, poultry, fish or wild animals (including wild birds); or

(b)     any stock lick or substance which is of a kind which can be and is in fact used as a stock lick, whether or not such stock lick or substance possesses medicinal properties.

Item 2    Animal remedy, i.e. goods consisting of a substance intended or offered for use in respect of livestock, poultry, fish or wild animals (including wild birds), for the diagnosis, prevention, treatment or cure of any disease, infection or other unhealthy condition, or for the maintenance or improvement of health, growth, production or working capacity.

Item 3    Fertilizer, i.e. goods consisting of a substance in its final form which is intended or offered for use in order to improve or maintain the growth of plants or the productivity of the soil.

Item 4    Pesticide, i.e. goods consisting of any chemical substance or biological remedy, or any mixture or combination of any such substance or remedy, intended or offered for use-

(a)     in the destruction, control, repelling, attraction, disturbance or prevention of any undesired microbe, alga, bacterium, nematode, fungus, insect, plant, vertebrate or invertebrate; or

(b)     as a plant growth regulator, defoliant, desicant, adjuvant or legume inoculant,

and anything else which the Minister of Agriculture has by notice in the Gazette declared to be a pesticide.

Item 5    Plants, i.e. goods consisting of living trees and other plants, bulbs, roots, cuttings and similar plant products in a form used for cultivation.

Item 6    Seed in a form used for cultivation.

2. The provisions of paragraph 1 shall apply only if-

(a)     the Commissioner, in respect of a vendor registered under this Act, is satisfied that that vendor, being the recipient of any such goods, carries on agricultural, pastoral or other farming operations and has issued to him a notice of registration in which authorization is granted whereby the goods concerned may be supplied to him at the rate of zero per cent: Provided that where a vendor to whom such notice of registration has been issued is in default in respect of his obligation under this Act to furnish any return or to pay tax or he has ceased to carry on the said operations or he has utilized such notice of registration for purposes other than the carrying on of such operations, the Commissioner may, by notice in writing to the vendor, cancel such authorization with immediate effect or with effect from a date determined by the Commissioner and require the vendor to surrender such notice of registration in order that an amended notice of registration, excluding the said authorization, may if necessary be issued to the vendor;

(b)     the goods concerned are supplied to a vendor who is in possession of a valid notice of registration as a vendor and an authorization contemplated in paragraph (a);

(c)     a tax invoice in respect of the relevant supply is issued containing such particulars as required by section 20(4) of this Act;

[Subparagraph (c) substituted by section 56 of Act 16 of 2004]

(d)     the acquisition, disposal, sale or use of the said goods is not prohibited in terms of section 7bis of the Fertilizers, Farm Feed, Agricultural Remedies and Stock Remedies Act, 1947 (Act No. 36 of 1947).

PART B

(SECTION 11(1)(j) OF THIS ACT)

Zero Rate: Supply of goods consisting of certain foodstuffs

[Schedule 2 amended by section 49 of Act 136 of 1991, by section 44 of Act 136 of 1992, by section 45(1) of Act 97 of 1993, by section 33 of Act 20 of 1994, by section 104 of Act 30 of 1998, by section 73 of Act 19 of 2001, by section 56(1) of Act 16 of 2004, by section 108 of Act 35 of 2007, by section 87 of Act 17 of 2017, by section 14(1) of Act 21 of 2018, by section 75(1) of Act 34 of 2019 and by section 55(1) of Act 20 of 2021 effective on 1 April, 2022]

1. The goods in respect of the supply of which the rate of zero per cent shall apply under the provisions of section 11(1)(j) of this Act shall, subject to the provisions of paragraph 2, be as hereunder set forth:

Item 1 Brown bread and whole wheat brown bread as defined respectively in Regulation 1 of the Regulations in terms of Government Notice No. R.405 published in Government Gazette No. 40828 of 5 May 2017.

[Item 1 substituted by section 14(1)(a) of Act 21 of 2018 effective on 1 April 2018]

Item 2  Maize meal graded as super maize meal, super fine maize meal, special maize meal, sifted maize meal or unsifted maize meal, not further processed other than by the addition of minerals and vitamins not exceeding one per cent by mass of the final product, solely for the purpose of increasing the nutritional value.

Item 3    Samp, not further prepared or processed.

Item 4    Mealie rice, not further prepared or processed.

Item 5    Dried silo screened mealies or dried mealies not further prepared or processed or packaged as seed, but excluding pop corn (zea mays everta).

[Item 5 substituted by section 108 of Act 35 of 2007]

Item 6    Dried beans, whole, split, crushed or in powder form but not further prepared or processed or where packaged as seed.

Item 7    Lentils, dried, whole, skinned or split.

Item 8    Pilchards or sardinella supplied in tins or cans consisting mainly of such products regardless of whether flavoured, seasoned or preserved in oil, but excluding such products as are supplied as pet food or sardines supplied in tins or cans.

Item 9    Milk powder: unflavoured, being the powder obtained by the removal of water from milk and which falls under the following classifications determined by the Minister of Agriculture under the Agricultural Product Standards Act, 1990 (Act No. 119 of 1990), or any regulation under that Act:

High-fat milk powder

Full-fat milk powder

Medium-fat milk powder

Low-fat milk powder

Fat-free milk powder,

provided that the fat or protein content of such milk powder consists solely of milk fat or milk protein.

Item 10  Dairy powder blend, being any dairy powder blend which falls under the following classifications determined by the Minister of Agriculture under the Agricultural Product Standards Act, 1990 (Act No. 119 of 1990), or any regulation under that Act:

High-fat dairy powder blend

Full-fat dairy powder blend

Medium-fat dairy powder blend

Low-fat dairy powder blend

Fat-free dairy powder blend.

Item 11  Rice, whether husked, milled, polished, glazed, parboiled or broken.

Item 12  Vegetables, not cooked or treated in any manner except for the purpose of preserving such vegetables in their natural state, but excluding dehydrated, dried, canned or bottled vegetables or such vegetables as are described under separate Items in this PART.

Item 13  Fruit, not cooked or treated in any manner except for the purposes of preserving such fruit in its natural state, but excluding dehydrated, dried, canned or bottled fruit and nuts.

Item 14  Vegetable oil, marketed and supplied for use in the process of cooking food, but excluding olive oil.

Item 15 Milk, including high-fat, full-fat, low-fat or fat-free milk, being the milk of cattle, sheep or goats that has not been concentrated, condensed, evaporated, sweetened, flavoured, cultured or subjected to any other process other than homogenization or preservation by pasteurization, ultra-high temperature treatment, sterilization, chilling or freezing or the addition of minerals, vitamins, enzymes and other similar additives not exceeding one per cent by volume of the final product, solely for the purpose of increasing the nutritional value.

[Item 15 substituted by section 73 of Act 19 of 2001]

Item 16  Cultured milk, being cultured milk as classified under the Agricultural Product Standards Act, 1990 (Act No. 119 of 1990), with the following class designation:

Cultured high-fat milk

Cultured full-fat milk

Cultured low-fat milk

Cultured fat-free milk.

Item 17  Brown wheaten meal, being pure, sound wheaten meal, but excluding separated wheaten bran, wheaten germ and wheaten semolina.

Item 18  Eggs, being raw eggs laid by hens of the species gallus domesticus, whether supplied in their shells or in the form of egg pulp being raw pulp consisting of the yolk and white which is obtained from such eggs after the shells have been removed.

Item 19  Edible legumes and pulse of leguminous plants, dried, whole, split, crushed, skinned or in powder form, but not further prepared or processed or where packaged as seed or such pulse as are described under separate Items in this PART.

Item 20   Cake wheat flour as defined in Regulation 1 of the Regulations in terms of Government Notice No. R.405 published in Government Gazette No. 40828 of 5 May 2017.

[Item 20 added by section 14(1)(b) of Act 21 of 2018 effective on 1 April, 2019]

Item 21    White bread wheat flour as defined in Regulation 1 of the Regulations in terms of Government Notice No. R.405 published in Government Gazette No. 40828 of 5 May 2017.

[Item 21 to be added by section 14(1)(b) of Act 21 of 2018 effective on 1 April, 2019]

2. The provisions of paragraph 1 shall not apply where any goods mentioned in that paragraph are supplied in the course of carrying out any agreement for the furnishing or serving of any meal, refreshment, cooked or prepared food or any drink, as the case may be, so as to be ready for immediate consumption when so supplied.

[Schedule 2 amended by section 49 of Act 136 of 1991, by section 44 of Act 136 of 1992, by section 45(1) of Act 97 of 1993, by section 33 of Act 20 of 1994, by section 104 of Act 30 of 1998, by section 73 of Act 19 of 2001, by section 56(1) of Act 16 of 2004, by section 108 of Act 35 of 2007, by section 87 of Act 17 of 2017 and by section 14(1) of Act 21 of 2018]

PART C

(Section 11(1)(w))

Item 1 Goods referred to in section 11(1)(w), referred to in Chapter 96 in Part I of Schedule No. 1 to the Customs and Excise Act under subheading 9619.00: “Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material:” limited to goods referred to in item No.:-

(i)         9619.00.02: Sanitary towels (pads), of wadding of textile material;

(ii)        9619.00.03: Pantyliners, of wadding of textile materials;

(iii)       9619.00.11: Sanitary towels (pads), of paper pulp, paper, cellulose wadding or webs of cellulose fibres;

(iv)       9619.00.12: Pantyliners, of paper pulp, paper, cellulose wadding or webs of cellulose fibres;

(v)        9619.00.21: Sanitary towels (pads), of other materials of heading 39.01 to 39.14;

(vi)       9619.00.41: Sanitary towels (pads), made up from knitted or crocheted textile material;

(vii)      9619.00.42: Pantyliners, made up from knitted or crocheted textile material; and

(viii)     9619.00.91: Other, sanitary towels (pads) and pantyliners.

Schedule 1 (VAT) – Exemption: certain goods imported into the Republic

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Schedule 1

(Section 13(3))

Exemption: Certain Goods Imported into the Republic

Goods imported, as contemplated in section 13(1), including imports from or via Botswana, eSwatini, Lesotho or Namibia, into the Republic and in respect of which the exemption under the provisions of section 13(3) applies, are set forth below.

1       Any of the following items imported into the Republic in respect of which the Controller has, in terms of the proviso to section 38(1)(a) of the Customs and Excise Act and which shall apply also to imports from or via Botswana, eSwatini, Lesotho or Namibia, granted permission that entry need not be made:

(i)      Containers temporarily imported;

(ii)     human remains;

(iii)    goods which in the opinion of the Commissioner are of no commercial value;

(iv)    goods imported under an international carnet; and

(v)     goods of a value for customs duty purposes not exceeding R500, and on which no such duty is payable in terms of Schedule No.1 to the said Act.

[Paragraph 1 amended by section 111 of Act 31 of 2005]

2. Goods, being printed books, newspapers, journals and periodicals, imported into the Republic by post of a value not exceeding R100 per parcel.

3. Goods, being gold coins imported as such and which the Reserve Bank has issued in the Republic in accordance with the provisions of section 14 of the South African Reserve Bank Act, 1989 (Act 90 of 1989), or which remain in circulation as contemplated in the proviso to subsection (1) of that section.

4. Goods temporarily exported from the Republic which are, at the time of export, registered as such with the Controller, in such form as the Commissioner may prescribe, and thereafter returned to the exporter, no change of ownership having taken place, and which can be identified on re-importation.

[Paragraph 4 substituted by section 112 of Act 31 of 2005]

5. Goods permitted under conditions prescribed by the International Trade Administration Commission which are forwarded unsolicited and free of charge by a non-resident to-

(a)     a public authority or a municipality; or

[Subparagraph (a) substituted by section 52 of Act 9 of 2006]

(b)     any association not for gain, which satisfies the Commissioner that such goods will be used by that association exclusively-

(i)      for educational, religious or welfare purposes; or

(ii)     in the furtherance of that association’s objectives directed to the provision of educational, medical or welfare services or medical or scientific research; or

(iii)    for issue to, or treatment of, indigent persons:

Provided that the recipient of the goods responsible for the distribution has furnished an undertaking that-

(a)     such goods are for the exclusive use by the organisation or for free distribution;

(b)     such goods will not be sold, leased, hired or otherwise disposed of for gain; and

(c)     no consideration or other counter-performance may be accepted by any person in respect of such goods.

[Paragraph 5 amended by section 108 of Act 32 of 2004 and substituted by section 113 of Act 31 of 2005]

6. Goods which are shipped or conveyed to the Republic for trans-shipment or conveyance to any export country: Provided that the Controller ensures that the tax is secured, in part or in full, by the lodging of a provisional payment or bond except where the Commissioner, in exceptional circumstances, otherwise directs, or in the circumstances contemplated in rule 120A.01(c) of Chapter XIIA of the Rules under the Customs and Excise Act. If proof is not furnished to the Commissioner that the goods have been duly taken out of the Republic within a period of 30 days or within such further period as the Commissioner may in exceptional circumstances allow, this exemption shall be withdrawn and tax, penalty and interest must be paid.

[Paragraph 6 substituted by section 114 of Act 31 of 2005]

7. Goods consisting of –

(a)     goods and foodstuffs set forth in Part A and Part B of Schedule 2 to this Act, but subject to such conditions as may be prescribed in the said Part; or

[Subparagraph (a) substituted by section 107 of Act 35 of 2007]

(b)     goods referred to in section 11(1)(f), but provided that such goods are supplied to and imported by the South African Reserve Bank, the South African Mint Company (Proprietary) Limited or any bank registered under the Banks Act, 1990 (Act No. 94 of 1990); or

(c)

(i)      fuel levy goods referred to in fuel levy item no.-

(aa)  195.10.03: Petrol as defined in Additional Note 1(b) to Chapter 27 in Part 1 of Schedule No. 1 to the Customs and Excise Act

(dd) 195.10.17: Distillate fuel, as defined in Additional Note 1(g) to Chapter 27 in Part 1 of Schedule No. 1 to the Customs and Excise Act;

(ee)  195.20.01: Biodiesel as defined in Additional Note 1(a) to Chapter 38 in Part 1 of Schedule No. 1 to the Customs and Excise Act; and

(ff)  195.20.03: Other biodiesel,

in Part 5A of Schedule No. 1 to the Customs and Excise Act; or

[Item (i) substituted by section 53 of Act 9 of 2006]

(ii)     petroleum oil and oils obtained from bituminous minerals, known as crude, referred to in tariff heading no. 27.09 in Part 1 of Schedule No. 1 to the Customs and Excise Act, when supplied and imported for the purposes of being refined for the production of fuel levy goods as defined in section 1 of the Customs and Excise Act; or

(iii)    ……….

[Item (iii) deleted by section 53 of Act 9 of 2006]

(iv)    illuminating kerosene (marked)as defined in Additional Note 1(f) to Chapter 27 in Part 1 of Schedule No. 1 to the Customs and Excise Act, referred to in fuel levy item no. 195.10.13 in Part 5A of Schedule No. 1 to the Customs and Excise Act and which are not mixed or blended with another substance; or

[Item (iv) substituted by section 53 of Act 9 of 2006]

[Paragraph 7 substituted by section 115 of Act 31 of 2005]

(d)     goods referred to in section 11(1)(w), referred to in Chapter 96 in Part I of Schedule No. 1 to the Customs and Excise Act under subheading 9619.00: “Sanitary towels (pads) and tampons, napkins and napkin liners for babies and similar articles, of any material:” limited to goods referred to in item No.—

(i)          9619.00.02: Sanitary towels (pads), of wadding of textile material;

(ii)         9619.00.03: Pantyliners, of wadding of textile materials;

(iii)        9619.00.11: Sanitary towels (pads), of paper pulp, paper, cellulose wadding or webs of cellulose fibres;

(iv)        9619.00.12: Pantyliners, of paper pulp, paper, cellulose wadding or webs of cellulose fibres;

(v)         9619.00.21: Sanitary towels (pads), of other materials of headings 39.01 to 39.14;

(vi)        9619.00.41: Sanitary towels (pads), made up from knitted or crocheted textile material;

(vii)       9619.00.42: Pantyliners, made up from knitted or crocheted textile material;

(viii)      9619.00.91: Other, sanitary towels (pads) and pantyliners.

8. In this paragraph, goods exempt from the levying of tax, are identified by heading numbers or rebate items and the descriptions as contemplated in Schedule 1 and Schedule 4 to the Customs and Excise Act, respectively. In some instances the exemptions below contain additional requirements or limitations or relaxations which differ from the Customs and Excise Act. Where any provisions of the Customs and Excise Act and the Schedules thereto provide otherwise, the provisions of this Schedule shall prevail.

In order to qualify for an exemption-

(i)      the goods must fall under one of the descriptions below;

(ii)     any requirements or limitations contained in that particular description must be complied with; and

(iii)    the Notes below must be complied with, regardless of whether or not the goods are required to be entered, customs duty is payable or a rebate of customs duty is granted in terms of the Customs and Excise Act.

SUBHEADING

DESCRIPTION

NOTES:

1.

The following exemptions, identified by Subheadings, shall be subject to the Notes as contemplated in Schedule No. 1 to the Customs and Excise Act.

4907.00.30

Travellers’ cheques and bills of exchange, denominated in a foreign currency

4911.10.20

Publications and other advertising matter relating to fairs, exhibitions and tourism in foreign countries

ITEM NO.

DESCRIPTION

406.00

GOODS IMPORTED FOR DIPLOMATIC AND OTHER FOREIGN REPRESENTATIVES:

NOTES:

1.

This exemption (excluding items 406.03 and 406.04) is allowed if the Director-General: Department of International Relations and Co-operation or an official acting under his or her authority has certified that any person requiring this exemption has been listed in the register maintained by Department of International Relations and Co-operation in accordance with the provisions of the Diplomatic Immunities and Privileges Act, 2001.

2.

For the purposes of item no.’s 406.03 and 406.04, “an organisation or institution” means an organisation which the Director-General: Department of International Relations and Co-operation or an official acting under his or her authority has certified as an organisation or institution with which the Republic has concluded a formal agreement, which provides, inter alia, for the granting of such exemption.

3.

This exemption is not allowed to South African citizens or permanent residents of the Republic unless—

(a)

they are South African citizens who are also citizens of a state the territory of which formerly formed part of the Republic; or

(b)

the Government of the Republic has, by agreement with an organisation or institution contemplated in Note No. 2, undertaken to grant an exemption to a South African citizen who is a representative, member, agent or officer, but excluding a delegate, with or to such organisation or institution.

4.

A motor vehicle, including a new motor vehicle obtained from a licensed customs and excise storage warehouse, exempted in terms of item no.’s 406.02, 406.03, 406.04, 406.05 or 406.07, may not be offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of two years from the date of importation:

Provided that any of the foregoing acts with this vehicle within a period of two years from the date of importation renders the importer of the vehicle liable to pay tax as determined by the Commissioner in consultation with the Director-General: Department of International Relations and Co-operation.

5.

Alcohol and tobacco products exempted in terms of item no.’s 406.02, 406.03, 406.04, or 406.05: Provided that the importer of the alcohol and tobacco products will be held liable to pay tax on the supply of such products to the persons contemplated in item no.’s 406.02, 406.03, 406.04 or 406.05.

6.

. . . . . .

7.

. . . . . .

406.02/00.00/01.00

Goods for the official use by a diplomatic mission and goods for the personal or official use by diplomatic representatives accredited to a diplomatic mission and members of their families

406.03/00.00/01.00

Goods for the personal or official use by members, agents, officers, delegates or permanent representatives of, to, or with an organisation or institution, and members of their families

406.04/00.00/01.00

Goods imported for the official use by an organisation or institution in terms of an agreement as provided for in Note no. 3.

406.05/00.00/01.00

Goods for the official use by a consular mission and goods for the personal or official use by consular representatives accredited to a consular mission and foreign representatives (excluding those referred to in item no.’s 406.02 and 406.03), and members of their families

406.06/00.00/01.00

Stationery, uniforms, furniture and equipment for the official use by a consular post headed by an honorary consular officer

406.07/00.00/01.00

Goods (excluding food, drink and tobacco in any form) imported by administrative and technical representatives accredited to diplomatic or consular missions, on their first entry on appointment by their governments, for their personal or official use, provided the said goods are imported with the approval of the Director-General: Foreign Affairs

407.00

GOODS IMPORTED BY IMMIGRANTS, TOURISTS, RETURNING RESIDENTS AND OTHER PASSENGERS, FOR THEIR PERSONAL USE:

NOTES:

1.

For the purposes of item nos. 407.01 and 407.02—

(a)

the person referred to in these item nos. means a “traveller” as defined in rule 15.01 to the Customs and Excise Act and as contemplated in form DA331; and

(b)

in addition to the notes to item no. 407.00, such traveller must comply with the requirements of section 15 of the Customs and Excise Act, the rules to that section and form DA331.

2.

The exemption in terms of item no. 407.01/00.00/01.02 is allowed only if the goods can be identified as being the same goods which were removed from the Republic.

3.

(a)

The exemption specified in item no. 407.02 shall only be allowed in the case of—

(i)

407.02/00.00/01.00/ once per person during a period of 30 days and shall not apply to goods imported by a person returning after an absence of less than 48 hours;

(ii)

407.02/00.00/02.00/ during a period of 30 days and shall not apply to goods imported by a person returning after an absence of less than 48 hours; and

(iii)

407.02/22.00, 407.02/24.02, 407.02/24.03 and 407.02/33.03 is applicable in addition to the provisions of item nos. 407.02/00.00/01.00 and 407.02/00.00/02.00 but only once per person during a period of 30 days and shall not apply to goods imported by a person returning after an absence of less than 48 hours.

4.

(a)

The exemption in terms of item no. 407.02 shall only apply to accompanied passengers’ baggage declared by returning residents of the Republic and non-residents visiting the Republic, for personal use or to dispose of as gifts.

(b)

The exemption in terms of item no. 407.02 shall only be allowed once per person during a period of 30 days and shall not be allowed for goods imported by persons returning after an absence of less than 48 hours.

(c)

For the purposes of item no. 407.02, any goods obtained from an inbound duty and tax free shop must be regarded as imported goods.

(d)

The exemption in terms of item no. 407.02 may, with the exception of tobacco and alcoholic products, be claimed by children under 18 years of age, whether or not they are accompanied by their parents or guardians, provided the goods are for use by the children themselves.

5.

A member of the crew of a ship or aircraft (including the master or pilot) is, subject to the conditions laid down by the Commissioner, only entitled to—

(a)

the exemption in terms of item no. 407.02/00.00/01.00 on new or used goods of a total value not exceeding R700 per person; and

(b)

the exemption in terms of item no. 407.02/00.00/02.00 on new or used goods of a total value not exceeding R2 000 per person.

6.

A member of the crew of a ship or aircraft (including the master or pilot) is not entitled to an exemption in terms of item nos. 407.02/22.00, 407.02/24.02, 407.02/24.03 and 407.02/33.03.

7.

If the person concerned so desires and indicates accordingly before the goods are cleared, the goods in respect of which the exemption in item no. 407.02/00.00/02.00 is applicable, may be cleared at the rates of duty specified in Schedule No. 1 to the Customs and Excise Act and with payment of tax levied in terms of section 7(1)(b) of this Act.

8.

(a)

The exemption in terms of item no. 407.02/00.00/02.00 is applicable in addition to the exemption in terms of item no. 407.02/00.00/01.00.

(b)

The exemptions in terms of item nos. 407.02/22.00, 407.02/24.02, 407.02/24.03 and 407.02/33.03 are applicable in addition to the exemptions in terms of item nos. 407.02/00.00/01.00 and 407.02/00.00/02.00.

(c)

Wine, spirituous and other alcoholic beverages, tobacco products and perfumery imported in excess of the quantities specified in item nos. 407.02/22.00, 407.02/24.02, 407.02/24.03 and 407.02/33.03, must be cleared with payment of tax levied in terms of section 7(1)(b) of this Act.

9.

If a person contravenes any provision of this Act, the Customs and Excise Act or any other law relating to the importation of goods, the Commissioner may refuse to grant any exemption provided for in item no. 407.02.

10.

For the purposes of item no. 407.04/87.00/01.00 the vehicle in question shall not be deemed to be personally owned and used personally by the importer, unless such importer was, at all reasonable times, personally present at the place where the vehicle was used by him or her, and the importer shall be deemed to have used that vehicle from the date on which he or she took physical delivery of the vehicle until the date on which the vehicle was delivered by him or her to the shipper or the agent for the purpose of shipment or dispatch. Where a vehicle is imported on its own wheels, the date of shipment or dispatch shall be the date that the vehicle leaves the country where it was so owned and used en route to the Republic.

11.

For the purposes of item no. 407.04, the importer shall, if that person is absent for a continuous period of longer than 3 months from the place where the vehicle is usually used in the Republic, not be deemed to have imported the vehicle for that person’s personal or own use, and tax as determined by the Commissioner is payable as from the date of such absence.

12.

The exemption in terms of item no. 407.04 is allowed once per family during a period of 3 years.

13.

Any entry under item no. 407.04 must be supported by a duly completed form DA 304 A.

14.

Any entry under item no. 407.06 must be supported by duly completed forms DA 304 and P1.160.

407.01

Personal effects, sporting and recreational equipment, new or used:

407.01/00.00/01.01

Imported either as accompanied or unaccompanied passengers’ baggage by non-residents of the Republic for their own use during their stay in the Republic

407.01/00.00/01.02

Exported by residents of the Republic for their own use while abroad and subsequently re-imported either as accompanied or unaccompanied passengers’ baggage by such residents

407.02

Goods imported as accompanied passengers’ baggage, including goods obtained at a licensed inbound duty and tax free shop either by non-residents or residents of the Republic and cleared at the place where such persons disembark or enter the Republic:

407.02/00.00/01.00

New or used goods, of a total value not exceeding R5 000 per person

407.02/00.00/02.00

Additional goods, new or used, of a total value not exceeding R20 000 per person

407.02/22.00/01.00

Wine not exceeding 2 litres per person

407.02/22.00/02.00

Spirituous and other alcoholic beverages, a total quantity not exceeding 1 litre per person

407.02/24.02/01.00

Cigarettes not exceeding 200 and cigars not exceeding 20 per person

407.02/24.03/01.00

250g Cigarette or pipe tobacco per person

407.02/33.03/01.00

Perfumery not exceeding 50 ml and toilet water not exceeding 250 ml per person

407.04

Motor vehicles imported by natural persons for own use on change of permanent residence to the Republic:

407.04/87.00/01.00

One motor vehicle per family, imported by a natural person for his or her personal or own use, who permanently changes his or her residence to the Republic and—

(i)

provided the vehicle so imported is the personal property of the importer and has personally been owned and used by him or her for a period of not less than 12 months prior to his or her departure to the Republic; and

(ii)

provided the vehicle is not offered, advertised, lent, hired, leased, pledged, given away, exchanged, sold or otherwise disposed of within a period of 20 months from the date of importation

407.06

Goods imported by natural persons for own use on change of residence to the Republic:

407.06/00.00/01.00

Household furniture, other household effects and other removable articles, including equipment necessary for the exercise of the calling, trade or profession of the person, other than industrial, commercial or agricultural plant and excluding motor vehicles, alcoholic beverages and tobacco goods, the bona fide property of a natural person (including a returning resident of the Republic after an absence of six months or more) and members of his or her family, imported for own use on change of his or her residence to the Republic: Provided that these goods are not disposed of within a period of six months from the date of importation

409.00

RE-IMPORTED GOODS:

NOTES:

1.

The importer must, at the time of entry of the goods upon re-importation, attach a statement to the bill of entry or other document prescribed in terms of the Customs and Excise Act, which indicates—

(a)

the reasons for the goods being returned;

(b)

whether any change in the ownership of the goods took place after their exportation from the Republic;

(c)

whether the goods have been subjected to any process of manufacture or manipulation after their exportation from the Republic and if so, to what extent;

(d)

the number and date of the bill of entry or other document prescribed in terms of the Customs and Excise Act, relating to the export of the goods and the place where such entry was made or the document on which the goods were registered prior to export of such goods for the purposes of the subsequent re-importation thereof; and

(e)

the place where and the number and date of the bill of entry or other document prescribed in terms of the Customs and Excise Act, on which tax was paid on the goods upon their first importation into the Republic or other documents, if applicable, to prove that the goods were previously imported and tax due was paid thereon.

2.

This exemption (excluding item no. 409.07) is allowed only if the goods can be identified as being the same goods which were exported.

3.

For the purposes of item no. 409.07—

(a)

“compensating products” means the products obtained abroad during or as a result of the manufacturing, processing or repair of the goods temporarily exported for outward processing; and

(b)

“temporarily exported for outward processing” means the customs procedure whereby goods which may be disposed of without customs restriction, are temporarily exported for manufacturing, processing or repair abroad and then re-imported.

409.01/00.00/01.00

Imported goods (including packing containers) re-exported and thereafter returned to or brought back by the exporter or any other party, without having been subjected to any process of manufacture or manipulation, no change of ownership having taken place subsequent to their exportation from the Republic, and which can be identified on re-importation as being the same goods: Provided that this exemption shall not apply if—

i)

the supply of those goods was charged with tax at the rate of zero percent in terms of section 11(1)(a); or

ii)

a refund in terms of section 44(9) is granted

409.02/00.00/01.00

Goods (including packing containers) produced or manufactured in the Republic, exported therefrom and thereafter returned to or brought back by the exporter or any other party, without having been subjected to any process of manufacture or manipulation (excluding excisable goods exported ex a customs and excise warehouse), no change of ownership having taken place subsequent to their exportation from the Republic, and which can be identified on re-importation as being the same goods: Provided that this exemption shall not apply if—

i)

the supply of those goods was charged with tax at the rate of zero per cent in terms of section 11(1)(a); or

ii)

a refund in terms of section 44(9) is granted

409.04/00.00/01.00

Imported or locally manufactured articles sent abroad for processing or repair, provided they are exported under customs and excise supervision, retain their essential character, are returned to the exporter, no change of ownership having taken place subsequent to their exportation from the Republic, and can be identified on re-importation: Provided that this exemption shall apply only to the extent of the value of the goods sent from the Republic on the day such goods left the Republic

409.06/00.00/01.00

Excisable goods exported ex a customs and excise warehouse and thereafter returned to or brought back by the exporter, without having been subjected to any process of manufacture or manipulation and no change of ownership having taken place subsequent to their exportation from the Republic: Provided that this exemption shall not apply if—

i)

the supply of those goods was charged with tax at the rate of zero per cent in terms of section 11(1)(a); or

ii)

a refund in terms of section 44(9) is granted

409.07/00.00/01.00

Compensating products (excluding goods liable to the duties specified in Part 2 of Schedule No. 1 to the Customs and Excise Act) obtained abroad from goods temporarily exported for outward processing, in terms of a specific permit issued by the International Trade Administration Commission, provided—

(i)

the specific permit is obtained before the temporary exportation of the goods;

(ii)

if the ownership of the compensating products is transferred prior to entry for customs purposes, such goods are entered in the name of the person who exported the goods;

(iii)

any additional conditions which may be stipulated in the said permit, are complied with; and

(iv)

that this exemption shall apply only to the extent of the value of the goods sent from the Republic on the day such goods left the Republic

410.00

GOODS FOR INDUSTRIAL AND COMMERCIAL PURPOSES:

NOTES:

1.  The exemption specified in item no. 410.04 shall only be allowed—

(a)

if the importer is a natural person and a holder of a valid travel document or passport from a SACU or SADC member state;

(b)

once per person during a period of 30 days; and

(c)

if the goods are of SACU or SACU origin; and if the combined net mass of the goods does not exceed 25kg.

410.04

Handmade articles for commercial purposes:

410.04/99.01/01.04

Leather or imitation leather articles

410.04/99.01/02.04

Wooden articles

410.04/99.01/03.04

Plaits and similar products of plaiting materials, basketwork, wickerwork and other articles, made directly to shape from plaiting materials.

410.04/99.01/04.04

Plastic articles

410.04/99.01/05.04

Textile articles

410.04/99.01/06.04

Stone articles

410.04/99.01/07.04

Glass articles

410.04/99.01/08.04

Base metal articles

412.00

GENERAL:

NOTES:

1.  For the purposes of item no.’s 412.03 and 412.04, the bill of entry or other document prescribed in terms of the Customs and Excise Act must be supported by an inventory of the goods and documentary proof that the goods qualify for exemption under these items.

1A.

For the purposes of item no. 412.07—

(a)

any offer to abandon or application to destroy any goods shall be in writing by or on behalf of the owner thereof, and shall—

(i)

include the bill of entry, the invoices and other documents relating to the importation of the goods;

(ii)

state the identifying particulars of the goods;

(iii)

state the reason for abandonment, or if application is made for destruction the reason why destruction and not abandonment is requested; and

(iv)

indemnify the Commissioner against any claim by any other person;

(b)

the owner shall be responsible for the cost of storage in and removal to the customs and excise warehouse or any place of security indicated by the Commissioner, if such storage or removal is required by the Commissioner, and for any other expenses, including the cost of destruction;

(c)

goods shall be destroyed under the supervision of an officer; and

(d)

goods in respect of which security of the duty due has been furnished to the Commissioner shall be deemed to be under control of the Commissioner.

2.  For the purposes of item no.’s 412.26 and 412.27, such exemptions are subject to compliance with sections 39 and 40 of the Customs and Excise Act and which shall apply also to imports from or via Botswana, eSwatini, Lesotho or Namibia.

3.

For the purposes of item no. 412.28—

(a)

a duty and tax free shop means a duty and tax free shop as contemplated in the rules for section 21 of the Customs and Excise Act; and

(b)

any word or expression used in relation to a duty and tax free shop shall have the meaning assigned thereto in the rules for section 21 of the Customs and Excise Act.

412.03/00.00/01.00

Used personal or household effects (excluding motor vehicles) bequeathed to persons residing in the Republic

412.04/00.00/01.00

Used property of a person normally resident in the Republic who died while temporarily outside the Republic

412.01

Goods for testing and experimental purposes

412.01/00.00/02.00

Arms and ammunition, parts and accessories thereof, classifiable in Chapter 93, for the purposes of testing and experimenting therewith as the National Conventional Arms Control Committee and the Directorate for Conventional Arms Control may allow by specific permit in terms of the National Conventional Arms Control Act, 41 of 2002.

Provided that-

(i)   goods imported under this rebate item shall be limited to goods imported for testing purposes and shall not be sold or disposed to any other party or be removed to the area of Botswana, Eswatini, Lesotho or Namibia unless under the specific authority of the National Conventional Arms Control Committee and the Directorate for Conventional Arms Control; and

(ii)   goods not consumed or destroyed during the testing process must be exported within 180 days from the date of the said import permits issued by the National Conventional Arms Control Committee and the Directorate for Conventional Arms Control.

412.07

Goods unconditionally abandoned to the Commissioner by the owner or goods destroyed with the permission of the Commissioner: Provided that the Commissioner may decline to accept abandonment or grant permission for destruction

412.07/00.00/01.00

Goods while still in a customs and excise warehouse or under the control of the Commissioner (excluding goods cleared under Schedule No. 3 of the Customs and Excise Act)

412.07/00.00/02.00

Goods cleared under Schedule No. 3 of the Customs and Excise Act

412.07/87.00/01.02

Motor vehicles cleared under any item of Schedule No. 4 of the Customs and Excise Act, damaged by accident or unavoidable cause

412.09

Goods Lost, Destroyed or Damaged

412.09/00.00/01.00/00

Goods in respect of which the customs duty, together with the fuel levy (where applicable), amounts to not less than R2 500, proved to have been lost, destroyed or damaged on any single occasion in circumstances of vis major or in such other circumstances as the Commissioner deems exceptional while such goods are—

(a)

in any customs and excise warehouse or in any appointed transit shed or under control of the Commissioner;

(b)

being removed with deferment of payment of duty or under rebate of duty from a place in the Republic to any other place in terms of the provisions of this Act; or

(c)

being stored in any rebate storeroom:

Provided that—

(i)

no compensation in respect of the customs duty, fuel levy or VAT on such goods has been paid or is due to the owner by any other person;

(ii)

such loss, destruction or damage was not due to any negligence or fraud on the part of the person liable for the duty or VAT; and

(iii)

such goods did not enter into consumption and the importer of those goods was not liable for the tax imposed in terms of section 7(1)(b) when those goods were initially imported; and

provided further that circumstances contemplated in this item exclude a hostile act by a third party constituted by robbery or theft.

412.10/00.00/01.00

Bona fide unsolicited gifts of not more than two parcels per calendar year and which the value per parcel does not exceed R1400(excluding goods contained in passengers’ baggage, wine, spirits and manufactured tobacco products) consigned by natural persons abroad to natural persons in the Republic

412.11/00.00/01.00

Goods imported—

(a)

for the relief of distress of persons in cases of famine or other national disaster;

(b)

under any technical assistance agreement; or

(c)

in terms of an obligation under any multilateral international agreement to which the Republic is a party:

Provided that—

(i)

the importation of any goods under this item shall be subject to a certificate issued by the International Trade Administration Commission and to such other conditions as may be agreed upon by the Governments of the Republic, Botswana, eSwatini, Lesotho and Namibia; and

(ii)

goods imported under this item shall not be sold or disposed of to any party who is not entitled to any privileges under the item, or be removed to the area of Botswana, eSwatini, Lesotho or Namibia without the permission of the International Trade Administration Commission

412.12/00.00/01.00

Goods imported for any purpose agreed upon between the Governments of the Republic, Botswana, eSwatini, Lesotho and Namibia: Provided that—

(i)

the provisions of this item shall not apply in respect of any consignment or quantity or class of goods unless the prior approval of the Governments of Botswana, eSwatini, Lesotho and Namibia has been obtained for the application of such provisions in respect of every such consignment or quantity or class of goods;

(ii)

the importation of any goods under this item shall be subject to a certificate issued by the International Trade Administration Commission and to such other conditions as may be agreed upon by the Governments of the Republic, Botswana, eSwatini, Lesotho and Namibia; and

(iii)

goods imported under this item shall not be sold or disposed of to any party who is not entitled to any privileges under the item, or be removed to the area of Botswana, eSwatini, Lesotho or Namibia without the permission of the Commissioner

412.26/00.00/01.00

Goods (excluding goods for upgrading) supplied free of charge to replace defective goods which are covered by a warranty agreement: Provided that—

(a)

a copy of the bill of entry or other document prescribed in terms of the Customs and Excise Act and the documents submitted in support of such document under which the goods were originally entered for home consumption are submitted;

(b)

the goods are supplied by the original supplier; and

(c)

proof that the replaced goods have been exported to the original supplier is submitted or the replaced goods are disposed of as directed by the Commissioner

412.27/00.00/01.00

Goods for upgrading supplied free of charge to replace parts which are covered by a warranty agreement: Provided that—

413.00

. . . . . . 

414.00

IMPORTED GOODS ADMITTED UNDER REBATE OF DUTY FOR CONSUMPTION OR USE AT AN INTERNATIONAL SPORTING EVENT APPROVED BY THE MINISTER, WHEN IMPORTED AND ENTERED BY THE CONTROLLING BODY OF A PARTICIPATING VISITING TEAM, A TEAM DOCTOR, AN OFFICIAL SPONSOR OF THE EVENT OR THE HOST OF THE EVENT ON BEHALF OF A PARTICIPATING VISITING TEAM

NOTES:

1.

The event may be approved by the Minister having regard to—

(i)

the foreign participation in that event; and

(ii)

the economic impact that event may have on the country as a whole.

2.

“Official sponsor” means a sponsor of the event appointed by—

(i)

the international organiser of the event; or

(ii)

the host of the event in the Republic.

414.01/00.00/01.00

Pharmaceutical goods (including medicaments) imported by—

(i)

a controlling body of a participating visiting team;

(ii)

a team doctor of a participating visiting team accredited by the Department of Health; or

(iii)

the host of the event on behalf of a participating visiting team,

in such quantities as the Department of Health may allow by specific permit.

414.02/00.00/01.00

Non-alcoholic beverages and foodstuffs imported by a controlling body of a participating visiting team or the host of the event on behalf of a participating visiting team, for consumption by members of the team during their stay.

414.03/00.00/01.00

Promotional material, individually of little value, imported by an official sponsor of the event or the host of the event on behalf of an official sponsor, not for sale but for distribution or use at an event venue.

460.23

GOODS IMPORTED OR CLEARED FROM A CUSTOMS AND EXCISE WAREHOUSE FOR THE EXPLORATION FOR PETROLEUM OR PRODUCTION OF PETROLEUM AS CERTIFIED BY THE DIRECTOR-GENERAL: MINERAL RESOURCES

Goods imported or cleared from a Customs and Excise warehouse by a person who—

(i)

is certified by the Director-General: Mineral Resources or Chief Executive Officer of the agency designated in terms of section 70 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) to be a person who, in the Republic—

(1)

explores for petroleum in terms of an exploration right issued in terms of section 80 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002);

(2)

produces petroleum in terms of a production right issued in terms of section 84 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002); or

(3)

is a contractor of any person referred to in paragraph (1) or (2); or

(ii)

subject to the approval of the Director-General: Mineral Resources or the Chief Executive Officer of the agency designated in terms of section 70 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), is a person (including, if a company, any subsidiary of such company) referred to in paragraph (1) or (3) who supplies such goods directly to any person or of any contractor or any person referred to in paragraph (2), for use in the manufacture of any equipment , installation or device, for use solely in operations in connection with the exploration for, or production of petroleum, and except for the purposes of item 460.23/00.00/02.00, in such quantities and at such times as the International Trade Administration Commission, may allow by specific permit, excluding—

(a)

distillate fuels, residual fuel oil and biodiesel;

(b)

goods for the personal use of any person; or

(c)

goods for use in the exploration or processing of any product other than petroleum as defined in the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002):

NOTES:

1.

For the purposes of paragraph (ii), the person entering such goods under rebate of duty shall be liable for the duty rebated unless—

(a)

he or she proves that such goods have been so supplied or used in the manufacture of the equipment, installation or device which has been delivered to the person referred to in paragraph (2); or

(b)

on request by the person who entered the goods under rebate of duty, and subject to the permission of the Commissioner the goods have been—

(i)

entered for home consumption and any duty and value-added tax payable in terms of the Value-Added Tax Act, 1991 (Act 89 of 1991) have been paid;

(ii)

destroyed or abandoned in terms of item 412.07; or

(iii)

exported.

460.23/00.00/01.00

Goods imported or cleared from a customs and excise warehouse for the exploration for or production of petroleum as contemplated in the notes to this item.

460.23/00.00/02.00

Goods free of duty imported or cleared from a customs and excise warehouse for the exploration for or production of petroleum as contemplated in the notes to this item.

470.00

GOODS TEMPORARILY ADMITTED FOR PROCESSING, REPAIR, CLEANING, RECONDITIONING OR FOR THE MANUFACTURE OF GOODS EXCLUSIVELY FOR EXPORT:

NOTES:

1.

The Commissioner may require the importer to register a rate of yield of the processed or manufactured goods that will be obtained per unit of the imported goods.

2.

(a)

The exemption in terms of item no. 470.03 is allowed only for goods to be used for the processing or manufacture of goods for export and the processed or manufactured goods must be exported—

(i)

for the purposes of item 470.03(01.00 and 02.00) within 12 months from the date of entry thereof; and

(ii)

for the purposes of item 470.03(03.00) within three (3) years from the date of entry thereof.

(b)

The exemption in terms of item no. 470.02 is allowed only for parts to be used and the goods submitted for repair, cleaning or reconditioning must be exported within 6 months from the date of importation thereof:

Provided that—

(i)

the Commissioner may, in exceptional circumstances, extend the period specified in each case for a further period as deemed reasonable; and

(ii)

the application for such extension is made prior to the expiry of the period of 3 years, 12 months or 6 months, as the case may be.

3.

This exemption is allowed only if the Controller ensures that the tax is secured, in part or in full, by the lodging of a provisional payment or bond except where the Commissioner, in exceptional circumstances, otherwise directs, or in the circumstances contemplated in rule 120A.01(c) of Chapter XIIA of the Rules under the Customs and Excise Act.

4.

If proof is not furnished to the Commissioner that the goods imported have been repaired, cleaned, reconditioned, processed or used in repairing, cleaning, reconditioning or processing and have been duly exported within the time period prescribed in note number 2, this exemption shall be withdrawn and tax, penalty and interest must be paid.

5.

For the purposes of Item No. 470.03/00.00/02.00:

(a)

Where the importer is contractually entitled to keep a portion of the goods manufactured, processed, finished, equipped or packed in lieu of payment for the operations carried out, that importer must—

(i)

also export those goods within the period of 12 months contemplated in Note 2(a); or

(ii)

(aa)

process a bill of entry at the office of the Controller for payment of the value-added tax on the goods retained; and

(bb)

adjust by voucher of correction the rebate bill of entry in respect of the quantity and value of the goods used to manufacture the goods retained.

(b)

The importer is required to maintain the records prescribed in terms of section 75 of the Customs and Excise Act.

470.02/00.00/01.00

Goods (including parts therefore) for repair, cleaning or reconditioning

470.02/00.00/02.00

Parts for goods temporarily imported for repair, cleaning or reconditioning

470.03/00.00/01.00

Goods for use in the manufacturing, processing, finishing, equipping or packing of goods exclusively for export

470.03/00.00/02.00

Goods free of duty, for use in the manufacture, processing, finishing, equipping or packing of goods exclusively for export

470.03/00.00/03.00

Goods for use in the manufacturing, processing, finishing or equiping of yachts exclusively for export

480.00

GOODS TEMPORARILY ADMITTED FOR SPECIFIC PURPOSES:

NOTES:

1.

The exemption in terms of item no. 480.35 is allowed—

(a)

only if the samples are imported by—

(i)

commercial travellers and other representatives of firms abroad who visit the Republic temporarily with their samples for the purpose of securing orders;

(ii)

persons or firms established in the Republic, including agents for foreign firms, to whom samples may be sent by firms abroad, free of charge, for the same purpose; or

(iii)

a prospective customer in the Republic to whom a sample is sent on free loans for inspection and demonstration with a view to obtaining an order for similar goods;

(b)

except with the permission of the Commissioner, for only one sample of each description, range, type or colour of an article; and

(c)

only if each sample is an article representative of a particular category of goods already produced or to be produced abroad, imported solely for the purpose of being shown or demonstrated free of charge to prospective customers.

2.

All goods shall be re-exported—

(a)

in the case of goods under an international carnet within the period of validity of such carnet; and

(b)

in the case of other goods within 6 months from the date of importation, thereof or within such further period as the Commissioner may in exceptional circumstances, allow.

3.

This exemption is allowed only if the Controller ensures that the tax is secured, in part or in full, by the lodging of a provisional payment or bond except where the Commissioner, in exceptional circumstances, otherwise directs, or in the circumstances contemplated in rule 120A.01(c) of Chapter XIIA of the Rules under the Customs and Excise Act.

4.

If proof is not furnished to the Commissioner that the goods have been duly re-exported within the time period prescribed in Note no. 2, this exemption shall be withdrawn and tax, penalty and interest must be paid.

5.  Notwithstanding this exemption, the importer shall remain liable for tax, until he proves that the goods have been duly re-exported or that the goods have been exported under the supervision of an officer, as defined in section 1 of the Customs and Excise Act.

6.

On request by the importer, and subject to the permission of the Commissioner, temporary admission may be terminated by entering the goods for home consumption or by abandonment or destruction of the goods whereupon tax must be paid.

480.05/00.00/01.00

Containers and other articles used as packing, whether or not filled at the time of importation: Provided that such articles do not become the property of the importer

480.10/00.00/01.00

Goods for display or use at exhibitions, fairs, meetings or similar events

480.15/00.00/01.00

Professional equipment (including ancillary apparatus and accessories) owned by persons resident abroad, for use solely by or under the supervision of a visiting person

480.20/00.00/01.00

Welfare material for seafarers for cultural, educational, recreational, religious or sporting activities

480.25/00.00/01.00

Instruments, apparatus and machines (including accessories therefore), for use by institutions approved by the Commissioner, for scientific research or education

480.30/00.00/01.00

Models, instruments, apparatus, machines and other pedagogic material (including accessories therefore) imported by institutions approved by the Commissioner, for educational or vocational training

480.35/00.00/01.00

Commercial samples owned abroad and imported for the purpose of being shown or demonstrated in the Republic for the soliciting of orders for goods to be supplied from abroad

490.00

GOODS TEMPORARILY ADMITTED SUBJECT TO EXPORTATION IN THE SAME STATE:

NOTES:

1.

Goods shall be re-exported—

(a)

in the case of goods under an international carnet within the period of validity of such carnet; and

(b)

in the case of other goods within 6 months from the date of importation thereof or within such further period as the Commissioner may in exceptional circumstances, allow.

2.

This exemption is allowed only if the Controller ensures that the tax is secured, in part or in full, by the lodging of a provisional payment or bond except where the Commissioner, in exceptional circumstances, otherwise directs, or in the circumstances contemplated in rule 120A.01(c) of Chapter XIIA of the Rules under the Customs and Excise Act.

3.

If proof is not furnished to the Commissioner that the goods have been duly re-exported within the time period prescribed in Note no. 1, this exemption shall be withdrawn and tax, penalty and interest must be paid.

4.

Notwithstanding this exemption, the importer shall remain liable for tax, until he proves that the goods have been duly re-exported or that the goods have been exported under the supervision of an officer, as defined in section 1 of the Customs and Excise Act.

5.

On request by the importer, and subject to the permission of the Commissioner, temporary admission may be terminated by entering the goods for home consumption, whereupon tax must be paid, or by abandonment or destruction. The provisions of item no. 412.07 will apply to the abandonment or destruction of the goods concerned.

490.03/87.00/01.00

Private motor vehicles belonging to a person taking up temporary residence in the Republic

490.05/00.00/01.00

Postcards and other mail matter, imported in bulk, for despatch to addresses beyond the borders of the Republic

490.10/00.00/01.00

Models or prototypes, to be used in the manufacture of goods

490.11/00.00/01.00

Matrices, blocks, plates, and similar articles, on loan or hire, for printing illustrations in periodicals or books

490.12/00.00/01.00

Matrices, blocks, plates, moulds and similar articles, on loan or hire, to be used in the manufacture of articles that are to be delivered abroad

490.13/00.00/01.00

Instruments, apparatus, machines and other articles to be tested by the South African Bureau of Standards

490.14/00.00/01.00

Instruments, apparatus and machines, made available free of charge to a customer by or through a supplier, pending delivery or repair of similar goods

490.15/00.00/01.00

Costumes, scenery and other theatrical equipment on loan or hire to dramatic societies or theatres

490.20/00.00/01.00

Animals and sport requisites (including yachts and motor vehicles) belonging to a person resident abroad, for use by that person or under his supervision in sports contests (including motor car rallies and transcontinental excursions)

490.25/00.00/01.00

Photographs and transparencies to be shown in a public exhibition or competition for photographers

490.30/00.00/01.00

Specialised equipment arriving by ship and used on shore at ports of call for the loading, unloading or handling of containers of tariff heading No. 86.09 of Schedule No. l to the Customs and Excise Act

490.35/00.00/01.00

Pallets, whether or not laden with cargo at importation

490.40/00.00/01.00

Machinery or plant (excluding tower cranes) for use on contract in civil engineering or construction work, in such quantities and at such times and subject to such conditions as the Commissioner, on the recommendation of the International Trade Administration Commission, may allow by specific permit

490.50/00.00/01.00

Motor vehicles, yachts and other removable articles (including spare parts and normal accessories and equipment therefore) imported by foreign tourists and travellers resident in foreign countries for their own use

490.60/00.00/01.00

Commercial road vehicles used in the conveyance of imported merchandise

490.90/00.00/01.00

Machinery or plant (excluding tower cranes) for use on contract other than for purposes of civil engineering or construction work, in such quantities and at such times and subject to such conditions as the Commissioner, on the recommendation of the International Trade Administration Commission, may allow by specific permit

490.90/00.00/02.00

Goods not specified in item no.’s 470.00, 480.00 or 490.00, temporarily admitted for purposes approved by the Commissioner.

498.00

IMPORTED GOODS FOR USE IN A CUSTOMS CONTROLLED AREA

NOTES:

1.

Goods may only be imported and entered into a customs controlled area under this item where such goods are imported by a customs controlled area enterprise or an SEZ operator.

2.

Goods may only be entered under item 498.02 by a registered SEZ operator as contemplated in rule 21A.04.

498.01/00.00/01.00

Goods that are imported into a customs controlled area by a customs controlled area enterprise

498.02/00.00/01.00

Goods of any description imported by a registered SEZ operator for use in the construction and maintenance of the infrastructure of a CCA in an SEZ.

[Schedule 1 amended by section 48 of Act 136 of 1991, by section 43 of Act 136 of 1992, by Government Notice No. 2244 of 31 July, 1992, by section 44(1) of Act 97 of 1993, by Government Notice No. 1955 of 7 October, 1993, by section 32 of Act 20 of 1994, by section 32(1) of Act 37 of 1996 and by section 53 of Act 27 of 1997, substituted by section 177 of Act 60 of 2001 and amended by section 58 of Act 30 of 2002, by section 121 of Act 74 of 2002, by Government Notice No. R.111 in Government Gazette 24274 of 17 January, 2003, by section 189 of Act 45 of 2003, by sections 52-55 of Act 16 of 2004, by section 108 of Act 32 of 2004, by sections 111-123 of Act 31 of 2005, by sections 52-53 of Act 9 of 2006, by section 89(1) of Act 20 of 2006 (as amended by section 109 of Act 8 of 2007), by section 85(1) of Act 8 of 2007, by Government Notice No. R.958 in Government Gazette 30370 of 12 October, 2007, by section 107 of Act 35 of 2007, by Government Notice No. R.766 in Government Gazette 32416 of 24 July, 2009, by Government Notice Nos. R.154 and R.157 in Government Gazette 34046 of 1 March, 2011, by section 143(1) of Act 24 of 2011, by Government Notice No. R.187 in Government Gazette 35102 of 2 March, 2012, by Government Notice No. R.506 in Government Gazette 35481 of 6 July, 2012, by Government Notice No. 995 in Government Gazette 35932 of 7 December, 2012, by Government Notice No. R.1072 in Government Gazette 36002 of 14 December, 2012, by section 181(1) of Act 31 of 2013, by Government Notice No. R.288 in Government Gazette 37554 of 17 April, 2014, by Government Notice No. R.723 in Government Gazette 39100 of 14 August, 2015, by Government Notice No. R.558 in Government Gazette 40004 of 20 May 2016, by section 87 of Act 15 of 2016, by section 31(1) of Act 16 of 2016, by section 74(1) of Act 34 of 2019, by Government Notice No. R.226 in Government Gazette 43051 of 28 February, 2020, by Government Notice No. R.1069 in Government Gazette 43781 of 9 October, 2020, by Government Notice No. R.369 in Government Gazette 44473 of 23 April, 2021, by Government Notice No. R.2185 in Government Gazette 46589 of 24 June, 2022, by section 25 of Act 16 of 2022 , by Government Notice No. R.3780 in Government Gazette 49104 of 11 August, 2023 and by section 53(1) of Act 17 of 2023 deemed effective on on 1 January, 2013]

Section 86A (VAT) – Provisions relating to special economic zones

Posted on by admin_kmos

86A.    Provisions relating to special economic zones

      

Where a provision of the Customs and Excise Act, the Manufacturing Development Act, 1993 (Act No. 187 of 1993), or the Special Economic Zones Act, or a regulation made thereunder governing the administration of special economic zones including a matter relating to the liability for or levying of value-added tax or a refund thereof or a supply of goods or services subject to tax at the zero-rate is inconsistent or in conflict with a provision of this Act, the provision of this Act will prevail.

[Section 86A inserted by section 176 of Act 60 of 2001 and substituted by section 30 of Act 16 of 2016 effective on the date on which the Special Economic Zones Act, 2014 (Act No. 16 of 2014), came into operation, 9 February 2016]

Section 86 (VAT) – Act binding on State, and effect of certain exemptions from taxes

Posted on by admin_kmos

86. Act binding on State, and effect of certain exemptions from taxes

This Act shall bind the State, and no provision contained in any other law providing for an exemption from any tax or duty shall be construed as applying or referring, as the case may be, to the tax leviable under this Act unless such tax is specifically mentioned in such provision.

Section 84 (VAT) – Amendment of Item 18 of Schedule 1 to Act 77 of 1968

Posted on by admin_kmos

84. Amendment of Item 18 of Schedule 1 to Act 77 of 1968, as amended by section 26 of Act 103 of 1969, section 18 of Act 66 of 1973 and section 34 of Act 87 of 1988

 

(1)     Item 18 of Schedule 1 to the Stamp Duties Act, 1968, is hereby amended­-

(a)     by the deletion of paragraphs (4) and (6); and

(b)     by the substitution in paragraph (7) for the words “any policy” of the words “any above-mentioned policy”.

(2)     Subsection (1) shall come into operation on the commencement date in respect of insurance policies, certificates of insurance and endorsements thereon executed on or after that date and renewals thereof falling due on or after that date.

Section 83 (VAT) – Amendment of Item 15 of Schedule 1 to Act 77 of 1968

Posted on by admin_kmos

83. Amendment of Item 15 of Schedule 1 to Act 77 of 1968, as substituted by section 13 of Act 89 of 1972 and amended by section 16 of Act 66 of 1973, section 21 of Act 88 of 1974, section 3 of Act 104 of 1976, section 20 of Act 114 of 1977, section 8 of Act 95 of 1978, section 8 of Act 102 of 1979, section 21 of Act 106 of 1980, section 9 of Act 99 of 1981, section 7 of Act 97 of 1982, section 14 of Act 92 of 1983, section 11 of Act 118 of 1984, section 11 of Act 81 of 1985, section 5 of Act 71 of 1986, section 13 of Act 108 of 1986, section 11 of Act 86 of 1987, section 33 of Act 87 of 1988 and section 14 of Act 69 of 1989

Item 15 of Schedule 1 to the Stamp Duties Act, 1968, is hereby amended by the addition under the heading “Exemptions from the duty under paragraph (3):” of the following subparagraph:

“(v)   Any registration of transfer of any share in a share block company as defined in section 1 of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), which confers a right to or an  interest in the use of immovable property, where such registration is in consequence of a sale or disposal of such share which in terms of the Value-Added Tax Act, 1991, constitutes a supply of such share and in terms of that Act value-added tax has been or will be paid by the transferor in respect of such supply.”.