As from 4 January 1999 Value-Added Tax at the rate of 14 per cent will be levied on the importation of goods from Botswana, Lesotho, Namibia and Swaziland (the BLNS countries).
At present the supply of livestock between registered vendors in South Africa is permitted at the zero rate. This will continue after 4 January 1999 as the South African Revenue Service is still in consultation with producers and various other stakeholders.
To ensure that there is no discrimination against producers in the BLNS countries, the importation of livestock from such countries will be allowed free of VAT, provided the BLNS importer can prove to the Customs officer at the time of importation that the livestock is being supplied to a VAT registered vendor. The BLNS importer must accordingly produce, together with the form CCA1, an order from the purchaser of the livestock on which the purchaserís VAT registration number is indicated. A South African vendor will similarly be allowed to import livestock acquired in a BLNS country for the purpose of making a taxable supply free of VAT.
Should the permission granted to South African vendors to apply the zero rate be withdrawn, all imports of livestock will also become subject to VAT at the standard rate.
The importation of livestock carcasses, meat, meat products and by-products will be subject to VAT at the standard rate.
ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
Mr. R de Beer
Tel: (012) 315-5955