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TradeSmart

UPDATE: Registration and Accreditation System data clean up
In our December 2009 , February 2010 and March 2010 TradeSmart newsletters we highlighted the Customs registration and licensing initiative. In a letter released on 18 December 2009, the South African Revenue Service (“SARS”) Customs and Border Management (“CBM”) division indicated that the update of CBM’s registration and licensing data base was scheduled to commence in January 2010. Due to the data volumes required for the data base CBM has divided the initiative into phases.

On 29 June 2010 SARS issued an updated letter, clearly stating that Clearing Agents and / or Road Haulier need to renew their licences within 7 days from receipt of the communication from the respective SARS Branch Office(s).

Licences which have not been renewed within the 7 days will be cancelled and trade will cease. Clearing agents and/ or road hauliers will have to submit a fresh application, subject to the standard licensing process.

Should you need assistance with the completion and/or submission of the documents to SARS, please contact us Ansa Du Preez on (011) 806 5178.

Carbon dioxide vehicle emissions tax
SARS released the draft notices on 2 July 2010 for the carbon dioxide (CO2) vehicle emissions environmental levy, which will come into effect on 1 September 2010. The environmental levy applies to both light and commercial vehicles.

This follows the announcement made by National Treasury in the Budget Speech in February this year. The CO2 emissions tax is to be implemented to encourage South Africans to move towards more energy-efficient and environmentally friendly vehicles.

A charge of R75 per gram for each gram over the 120g/km limit will be levied in the form of an environmental levy, under Part 3 of Schedule 1 of the Customs and Excise Act, 1964. The duty is vatable in terms of section 13 (2)(a) of the Value-Added Tax Act,1991.

The environmental levy on motor vehicle CO2 emissions will be levied at the time that the vehicles are entered for home consumption, either when they are imported into South Africa or when they are manufactured. Vehicle manufacturers are to submit quarterly accounts (i.e. DA 177) to SARS, in conjunction with the quarterly DA199 customs manufacturing account under the Motor Industry Development Programme (MIDP).

Comments on the draft notices are to be submitted by 16 July 2010. SARS will not be entertaining individual correspondence due to time constraints.

Should you have any questions, please do not hesitate to contact Annelise Warrington on (011) 806 5736.

Vat/customs exemption on imports used in FIFA World Cup
The Customs and Excise Act No 91 of 1964 makes provision, under rebate item (“RI”) 413.00, for qualifying persons to import goods for use during the 2010 FIFA World Cup South Africa (“tournament”) under rebate of customs duty. With the tournament having come to an end, qualifying persons who imported goods under the RI are required to comply with the following requirements with regards to the disposal of the goods not sold, consumed or used during the tournament:

  • Export;
  • Abandon, destroy or unconditionally donate to charity (prior permission to be obtained from SARS); or
  • Clear for home consumption.

Should the decision be to export the goods, such export must be done within 24 months after the closing ceremony (i.e. 11 July 2010) in the case of FIFA and FIFA subsidiaries and 12 months for all other qualifying persons. Customs duty and VAT are payable immediately should SARS discover that any of the provisions of the RI have been contravened and penalties may be imposed (or criminal prosecution initiated).

Should you have questions regarding the above or require our assistance please contact us on 011 209 6326

Payments to SARS
The following methods are available to clients for the submission of payments:

  • eFiling;
  • Electronically using the internet;
  • At a branch of one of the relevant banking institutions;
  • Arranging a debit order; or
  • At a SARS branch office.

The following two items are essential to ensure that payments are processed correctly:

  • SARS beneficiary account ID; and
  • A 19-digit bank payment reference number. This tells SARS exactly who the client is and enables the allocation of such payment to a specific tax/duty type and period. The 19-digit payment reference number is made up by the following:
    • The first 10 digits relate to your tax/duty reference number, namely allocated customs code.
    • The 11th digit refers to the tax type e.g. “C” for customs and “V” for VAT
    • The last 8 digits refer to the period for which the payment is being made. The date format used is ddmmyyyy.
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