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What are the SARS Interpretation Notes dealing with VAT on exported goods?

09 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Please provide me with an interpretation note dealing exporting goods so I can insist a supplier charges VAT.

A client of mine (A) is exporting goods to an overseas (B). My client’s supplier (C) is shipping directly to their client (B) on my clients behalf (A), but billing my client (A).

I need to prove to the local supplier (C) that they have to charge VAT, yet the VAT handbook is unclear. I maintain that the supplier(C) has to charge my client (A) VAT. They refuse to do so as they say the goods are exported. I believe it is correct that my client (A) does not charge the foreign company vat (B), yet the local company (C) shipping on my client’s behalf should charge VAT.

A: Please refer to Interpretation Notes 30 and 31.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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