EXTERNAL GUIDE
COMPLETION OF VAT 201 FOR DIESEL REFUNDS
TABLE OF CONTENTS
1
SCOPE
3
2
POLICY STATEMTNT
3
i)
Example 1 (on land) – tax period 6 monthly
3
ii)
Example 2 (offshore) - tax period 2 monthly
4
iii)
Example 3 (electricity generating plants) - tax period monthly
4
iv)
Example 4 (rail and certain harbour vessels) - tax period 2 monthly
5
3
REFERENCES
5
3.1
LEGISLATION
5
3.2
CROSS REFERENCES
6
4
DEFINITIONS AND ACRONYMS
6
5
DOCUMENT MANAGEMENT
6
SCOPE
This policy applies to VAT vendors claiming a refund in terms of rebate item 670.04 of Schedule No. 6 to the Customs and Excise Act No. 91 of 1964.
POLICY STATEMTNT
The general fuel levy increases by 20.0c per litre and the Road Accident Fund (RAF) levy increases by 8.0c per litre respectively on 4 April 2012.
Fuel levy = Increases from 162.5 c/l to 182.5 c/l; and
RAF = Increases from 80.0 c/l to 88.0 c/l.
The 7.5 c/l fuel levy (April 2010) to help fund the new multi-product petroleum pipeline between Durban and Guteng will not form part of the diesel refund system.
Thus (Full fuel levy = 182.5 c / litre excluding the pipeline levy of 7.5 c/l = 175.0 c/l).
The diesel refund in respect of on-land primary sector beneficiaries is 40% of the general fuel levy of
175.0 c/l which equals 70.0 c/l of the qualifying 80% of diesel consumption.
With effect from 1 October 2007, the existing diesel refund scheme was extended to include Electricity Generation Plants, with a capacity exceeding 200 megawatt per plant and using distillate fuel solely for the purpose of generating electricity.
USAGE TYPES
PREVIOUS
NEW
On Land (Farming, Mining & Forestry)
142.0 c/l
158.0 c/l
Electricity Generation Plants
235.0 c/l
263.0 c/l
Offshore (Commercial fishing, Coastwise Shipping, Offshore Mining & NSRI)
235.0 c/l
263.0 c/l
Rail & Harbour Services
80.0 c/l
88.0 c/l
Where the implementation date of the new rates for RAF levy and fuel levy falls within the tax period, a factor has been determined on which a vendor must recalculate total non-eligible and eligible litres to determine the correct litres to be entered on the VAT 201 return.
The prescribed factor per usage type is as follows:
On Land
0.89873
Electricity Generation Plants
0.89354
Offshore
0.89354
Rail & Harbour Services
0.90909
The VAT vendor must recalculate total non-eligible and eligible litres purchased up to and on
3 April 2012, by using the factor (shown above) to reduce these litres to enable them to use the new rate when, calculating the diesel refund.
Examples of the calculations are shown below:
Example 1 (on land) – tax period 6 monthly
Return for tax period 08/2012
(01 March to 31 August)
Invoices to 03/04/2012 @ 142.0 c/l
Invoices from 04/04/2012 @ 158.0 c/l
Total Litres
102 000.00
102 000.00
Non-eligible Litres
2 000.00
2 000.00
Eligible Litres
100 000.00
100 000.00
80% of Eligible Litres
80 000.00
80 000.00
Amount Refundable
R 113 600.00
R 126 400.00
TOTAL REFUNDABLE
R 113 600.00 + R 126 400.00.= R 240 000.00
Correction of litres purchased until 3 April 2012:
Total litres times factor equals recalculated litres:
102 000 litres
x
0.89873
=
91 670 litres
Non-eligible litres times factor equals recalculated litres:
2 000 litres
x
0.89873
=
1 797 litres
Recalculated eligible litres:
91 670 litres
1 797 litres
=
89 873 litres
Return for April 2012 to be completed as follows:
Recalculated litres plus litres purchased from 04/04/2012 equals figures for return
Total litres
91 670
(Recalculated)
+
102 000
(litres from 04/04/12)
=
193 670
Non-eligible litres
1 797
(Recalculated)
+
2 000
(litres from 04/04/12)
=
3 797
Eligible litres
89 873
(Recalculated)
+
100 000
(litres from 04/04/12)
=
189 873
80% of eligible litres
71 391
(Recalculated)
+
80 000
(litres from 04/04/12)
=
151 391
Amount refundable 151 391 (litres) x 158.0 c/l = R 239 197.78
Example 2 (offshore) - tax period 2 monthly
Return for tax period 04/2012
(March and April)
Invoices to 03/04/2012 @ 235.0 c/l
Invoices from 04/04/2012 @ 263.0 c/l
Total Litres
102 000.00
102 000.00
Non-eligible Litres
2 000.00
2 000.00
Eligible Litres
100 000.00
100 000.00
Amount Refundable
R 235 000.00
R 263 000.00
TOTAL REFUNDABLE
R 235 000.00 + R 263 000.00 = R 498 000.00
Correction of litres purchased until 03/04/2012
Total litres times factor equals recalculated litres:
102 000 litres
x
0.89354
=
91 141 litres
Non-eligible litres times factor equals recalculated litres:
2 000 litres
x
0.89354
=
1 787 litres
Recalculated eligible litres:
91 141 litres
-
1 787 litres
=
89 354 litres
Return for April 2012 to be completed as follows:
Recalculated litres plus litres purchased from 04/04/2012 equals figures for return
Total litres
91 141
(Recalculated)
+
102 000
(litres from 04/04/12)
=
193 141
Non-eligible litres
1 787
(Recalculated)
+
2 000
(litres from 04/04/12)
=
3 787
Eligible litres
89 354
(Recalculated)
+
100 000
(litres from 04/04/12)
=
189 354
Amount refundable 189 354 (litres) x 263.0 c/l = R 498 001.02
Example 3 (electricity generating plants) - tax period monthly
With effect from 1 October 2007, the existing diesel refund scheme was extended to include Electricity Generation Plants, with a capacity exceeding 200 megawatt per plant and using distillate fuel solely for the purpose of generating electricity.
Return for tax period 04/2012
(April)
Invoices to 03/04/2012 @ 235.0 c/l
Invoices from 04/04/2012 @ 263.0 c/l
Total Litres
102 000.00
102 000.00
Non-eligible Litres
2 000.00
2 000.00
Eligible Litres
100 000.00
100 000.00
Amount Refundable
R 235 000.00
R 263 000.00
TOTAL REFUNDABLE
R 235 000.00 + R 263 000.00 = R 498 000.00
Correction of litres purchased until 03/04/2012
Total litres times factor equals recalculated litres:
102 000 litres
x
0.89354
=
91 141 litres
Non-eligible litres times factor equals recalculated litres:
2 000 litres
x
0.89354
=
1 787 litres
Recalculated eligible litres:
91 141 litres
-
1 787 litres
=
89 354 litres
Return for April 2012 to be completed as follows:
Recalculated litres plus purchased from 04/04/2012 equals figures for return
Total litres
91 141
(Recalculated)
+
102 000
(litres from 04/04/12)
=
193 141
Non-eligible litres
1 787
(Recalculated)
+
2 000
(litres from 04/04/12)
=
3 787
Eligible litres
89 354
(Recalculated)
+
100 000
(litres from 04/04/12)
=
189 354
Amount refundable 189 354 (litres) x 263.0 c/l = R 498 001.02
Example 4 (rail and certain harbour vessels) - tax period 2 monthly
Return for tax period 04/2012
(March and April)
Invoices to 03/04/2011 @ 80.0 c/l
Invoices from 04/04/2012 @ 88.0 c/l
Total Litres
102 000.00
102 000.00
Non-eligible Litres
2 000.00
2 000.00
Eligible Litres
100 000.00
100 000.00
Amount Refundable
R 80 000.00
R 88 000.00
TOTAL REFUNDABLE
R 80 000.00 + R 88 000.00 = R 168 000.00
Correction of litres purchased until 03/04/2011
Total litres times factor equals recalculated litres:
102 000 litres
x
0.90909
=
92 727 litres
Non-eligible litres times factor equals recalculated litres:
2 000 litres
x
0.90909
=
1 818 litres
Recalculated eligible litres:
92 727 litres
-
1 818 litres
=
90 909 litres
Return for April 2012 to be completed as follows:
Recalculated litres plus litres purchased from 04/04/2012 equals figures for return
Total litres
92 727
(Recalculated)
+
102 000
(litres from 04/04/12)
=
194 727
Non-eligible litres
1 818
(Recalculated)
+
2 000
(litres from 04/04/12)
=
3 818
Eligible litres
90 909
(Recalculated)
+
100 000
(litres from 04/04/12)
=
190 909
Amount refundable 190 909 (litres) x 88.0 c/l = R 167 999.92
REFERENCES
LEGISLATION
TYPE OF REFERENCE
REFERENCE
Legislation and Rules administered by SARS:
Customs and Excise Act No. 91 of 1964: Section 75
Customs and Excise Rules: None
Other Legislation:
None
International Instruments:
None