On 1 July 2021 the wine and spirits industries submitted an urgent request for a directive granting the South African Revenue Service (SARS) permission to extend the excise duty payment terms of the alcohol industry for at least 90 days. According to feedback from SARS it is not possible for SARS to grant a blanket deferment to the industry, however individual entities may apply for an extension in their own capacity.

“Please note that the requested extension of excise duty payment terms would require a time-consuming legal amendment to Rule 19A.11 of the Act. Considering the urgency of the alcohol industry’s plight, SARS therefore recommends that SALBA/Vinpro advises its members to make use of the current legal provisions whereby excise compliant traders may request permission for deferrals of their duty payments as per the conditions in terms of Rule 105 of the Act,” reads the correspondence from SARS.

Although this excise extension would probably be more applicable to spirits (duty at source) than wine, Vinpro shares the following practical advice received from businesses who have successfully applied for this extension earlier this year.

The Customs and Excise Relief Committee uses the template below to process the claim for the deferment of excise:
DOWNLOAD TEMPLATE

Each application should also be supported by information as to why the extension should be granted, with more specific details of the amounts involved, demonstrating the financial hardship, a clean compliance record, as well as any other relevant supporting information/documentation (as if this were a normal debt postponement request). In previous correspondence SARS advised that the following documents should be sent along with any application:

• The name and customs code of the person applying for payment relief (juristic or natural).
• SARS tax reference number.
• Physical and postal address, as well as other contact details.
• The type and amount of debt (Customs/VAT/PAYE/PIT).
• The repayment plan, including amount of the debt, instalment amount and period, etc.
• A concise motivation for the application.
• Bank statement for a period of six months.
• Documentary evidence of the applicant’s finances, including an audited financial statement for the financial year preceding the date of the application.
• Applicant’s anticipated income and receipts during the proposed of repayment.
• The applicant’s assets, investments and policies including descriptions of the assets.
• The applicant’s debtors and creditors, including their contact details, names and amounts owed or owing.
• Contracts or tenders awarded to the applicants.
• A certified copy serving as documentary evidence authorising the person submitting the application to act on behalf of the applicant.

Applications should be submitted to the following email address:
osc@sars.gov.za

It is suggested that each applicant copy the office of the Customs & Excise Chief Officer, Mr Beyers Theron (btheron@sars.gov.za) and their own tax relationship manager (where applicable).

The individual who responds to the application is:
Simphiwe Hlazo
Operations Specialist: Excise
SHlazo@sars.gov.za
Cell +27 61 521 9836
SARS Head Office, Brooklyn

The official who signs off on the deferment is:
Mr. Beyers Theron (Chairperson)
Customs and Excise Relief Committee

Further enquiries may be directed to:
Christo Conradie
Vinpro Manager: Wine Business
tel:       +27 (0)21 276 0429
email:  christo@vinpro.co.za