ALL CPM SUPPLIERS & CUSTOMERS PLEASE URGENTLY NOTE THE FOLLOWING REGARDING DRC VAT RE-VALIDATION PROCEDURES AND CUSTOMER VAT REGISTRATION CERTIFICATES
As from the 1 August 2022, the following conditions apply to all VAT registered vendors who supply or buy valuable metal (i.e. anything containing gold) to or from us:
- If you have registered for DRC you should have received an automated response from SARS with an email acknowledging receipt, along with an automatically generated case number. Please forward this email to us as proof that the re-validation process has been followed.
- If you did not receive this automated response please submit your application again. The case number is crucial. For example, CPM submitted applications at the beginning of the month for both our second hand and investment divisions, for which no response was received. Once re-submitted, we then did receive the automatic response with the case number.
- For all our affected customers, please forward us a copy of your VAT registration certificate, along with the copy of the SARS auto reply email and case number.
- In certain instances suppliers and/or customers would have been automatically identified by SARS as falling within the ambit of the DRC regulations. This “letter of intent for re-validation” will suffice for trading purposes if we have it on file. Please ensure you confirm we have received.
- We will be unable to trade with VAT vendors in valuable metal (from 1 August 2022) unless we have received the above.
- If you are in the process of de-registering for VAT please bear in mind that until such time as SARS confirm de-registration, you are still a VAT vendor and subject to DRC regulations.
- Please ensure all of the above is sent to shani@cpmct.co.za with the following in the subject line: DRC – (your vat number) – (your registered trading name)
We have limited time to ensure we are compliant with the new legislation and one of our compliance staff or reps will be in touch with those suppliers and customers who still need to be confirmed.
Should you have any questions or queries, please do not hesitate to contact shani@cpmct.co.za or call on 021 551 2066 (ext. 227) / 066 067 9785.
CPM have added a section to our website with examples of the documents you’ll need to complete your compliance procedure. Go to http://www.capepreciousmetals.com/governance/ and scroll down to the VAT Certification section for these download links.
Additional guidance on DRC is available from SARS and we would strongly suggest all affected parties familiarise themselves with the following:
- Frequently Asked Questions: Domestic Reverse Charge Regulations
- VAT regulations on Domestic Reverse Charge relating to valuable metal
- Summary: Domestic Reverse Charge Webinar Final June 2022
- Summary: Domestic Reverse Charge Webinar Operational Requirements
Thank you!
CPM MANAGEMENT
