A company imported hazardous goods from Germany. The company was sent a SAD500 form & requested to pay R21 760.35, which they subsequently paid. Kindly advise as to how the company can claim this amount back if it was listed as duties & taxes on the SAD
Author: Alison van den Berg
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The SAD500 form is an import declaration and declares to SARS that the company imported the goods in question. On importation, there may be are duties (depending on applicable tariff heading of the product (HS code – this is inserted and visible on the SAD500) and VAT payable. You mentioned the company was “requested to pay R21 760.35.” If the goods are of EU origin, there should mostly not be any import duties payable, but to get a refund, you would have to produce an origin certificate to show that zero duties were due. In respect of import VAT (15% of the customs value (per invoice and SAD500) this is an input tax deduction but there are requirements, that depend on the facts, which determine whether or not the company can claim the VAT back. For example, only a registered VAT vendor can claim the input tax from SARS, and if the import was for use in the enterprise. A claim for the input tax must also be supported by submission of the import documents (SAD500 and supporting documents like the invoice etc.) and proof that the VAT was paid to SARS. The process of claiming also depends on whether the company was named as the importer of record in respect of the import, or whether the clearing agent was cited as the importer. The timing of the claim vs. proof of payment of VAT to SARS by the agent is also relevant. We suggest the member/company urgently approach their clearing agent for the required documents (there is a time limit) and further advice on this process.