Import VAT on Microlight kits

[crossing16]

Hi Guys,
This subject came up some time back, but I cannot find it again on the site. But for anyone who is interested, here is the response I received today from SARS regarding the VAT calculation on importing Microlight kits:

In as far as customs related costs are concerned; only VAT is payable since the rate of duty on aircraft is ‘FREE’.

You are correct, VAT would be calculated on R308 000 if the Customs Value is R280 000 and the rate of duty is ‘FREE’.

The VAT calculation is as follows:

VAT = 14% x ATV (Added Tax Value)
Where ATV = CV + 10% of CV + all non-rebated duties

Therefore ATV = R280 000 + R 28 000 + 0

Thus VAT = 14% x R308 000 = R43 120.00


Regards,

Operational Specialist: Customs
SARS National Contact Centre (KZN)
0800 00 7277

[Karman]

Ehlo,

What the 10% for?

[bobthebuilder]

Which kit are you looking to bring in?

[crossing16]

Got my heart set on the Quicksilver 2S, still allot of homework to do before taking the financial plunge!
One option was to include floats for water and ground operations, but seems that there are allot of obstacles in the way as opposed to the use of dams in SA for amphibious aircraft. Soooooo many rules and regulations for recreational flying. Can anyone assist as to a website where I can obtain the aviation law on microlight flying in SA? While doing my PPL in 2006, I got a book “Aviation Law for Private Pilots in SA” but I’m not sure if all the laws are the same?