Contentious VAT ruling likely to be amended

ALAN PEAT IT seems there might be a solution to the contentious issue of the latest SA Revenue Service (Sars) “interpretation note” on exports which are zero-rated for value added tax (VAT). The big question being bandied around in the forwarding industry is how it is possible to get import bills of entry from destination countries – especially those in the African continent – so that you get your zero-rating. You could from some, they added, but even this would not be easy, and certainly administratively costly. From others, it would be an utter impossibility. But whispers have been heard at high level in the clearing and forwarding community that this interpretation note is likely to be amended or dropped altogether. That, forwarders told FTW, would be good news – as this demand is designed to create difficulties and would have a negative impact on trade.