Government Gazette No. 44473 - Amendment made to the VAT Act to regulate purchases made by diplomats at licensed special shops

Schedule 1 to the VAT Act provides for the exemption of certain goods imported into SA. In terms of paragraph 8 of schedule 1, in order for the goods to qualify for the exemption, the goods are required to fall under one of the listed item headings (such as 406) and the requirements contained within the item heading and paragraph 8 must be adhered to. Item 406 contains the provisions for goods imported for diplomatic and other foreign representative.

The amendment provides that this exemption will not be applicable to SA citizens or permanent residents of SA, unless the SA citizen is also a citizen of a territory which previously formed part of SA or the SA government in agreement with an organisation/institution undertakes to grant an exemption to the SA citizen who is a representative member, agent or officer but is not applicable to delegates of the above organisation/institution.

Further alcohol and tobacco products which are acquired for purposes listed in item 406.02, 406.03, 406.04 and 406.05 are exempt provided that the importer of the alcohol or tobacco will be liable to pay tax on the supply of the products to the respect person listed in in item 406.02, 406.03, 406.04 and 406.05.

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02/07/2021