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Draft Regulation on the VAT treatment of indirect exports by road or rail

10 December 2012   (0 Comments)
Posted by: SAIT Technical
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By SARS Legal & Policy

The Value-Added Tax Export Incentive Scheme published as Notice 2761 of 1998 in Government Gazette No. 19471 of 13 November 1998 (the Export Regulation) has been updated following the 2012 Budget announcement that the VAT treatment of indirect exports by road or rail will be reviewed.

The new Draft Export Regulation makes provision for a vendor to elect to supply movable goods to a qualifying purchaser at the zero rate where the qualifying purchaser exports the goods by road or rail subject to certain requirements.

Further amendments to the Export Regulation include inter alia

 transformation of the general structure of the Export Regulation in order to follow a more logical approach and layout for easier reading and reference;

 an extension of the time period to export the movable goods, to obtain the documentary proof and to submit an application for a refund of tax in certain circumstances;

 certain definitions in order to broaden the scope of persons who are able to obtain a VAT refund; and

 relevant changes to the procedure for claiming a VAT refund.

The Draft Export Regulation is published for public comment. All comments should be sent to on or before 31 January 2013.

Please click here to download the draft Regulation.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


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