Comments on the Draft Regulations on Domestic Reverse Charge relating to valuable metals

The submission contains SAICA’s comments on the on the Draft Regulations on Domestic Reverse Charge (DRC) relating to valuable metals issued in terms of section 74 of the Value-Added Tax Act, 1991 (Act No. 89 of 1991). The Draft Regulations introduce a Domestic Reverse Charge Mechanism and apply in respect of supplies of defined valuable metals between vendors and make provision for the purchasing vendor to declare and pay to SARS the VAT charged on the acquisition of defined valuable metals and claim the input tax thereon, within the same tax period or within 12 months after the end of the tax period in which the tax invoice was issued. The Draft Regulations also prescribe additional requirements for the tax invoice, administrative matters as well as additional responsibilities for both the supplying vendor and the purchasing vendor.