Customs won’t enforce proof of delivery clause

ALAN PEAT THERE’S BEEN further confirmation that proof of final delivery of exports for VAT purposes is “on hold”.This follows a reader query regarding a recent FTW article quoting the SA Association of Freight Forwarders (Saaff) on the subject. Although a demand for proof of delivery is still part of the legislative content of the recently-promulgated VAT practice note 30, it is not being enforced until this legislation can be appropriately changed, according to Brian Olwage, owner of Airground Freight Management and Saaff director for customs. There were loud wails from the freight forwarding and export industries when the new rules were announced – with the sheer impossibility of getting proof of delivery (particularly from African countries) being explained to customs. “They have agreed it is impossible,” said Olwage. “But it is in the legislation, and will remain there until the practice note can be legally changed.” However, he added, customs have agreed that – until this correction procedure is complete – the proof of delivery clause will not be enforced. “The document is being rewritten at the moment,” said Olwage, “after a workshop between Saaff and customs. “We have accepted the draft, with certain recommended changes, and expect to see the final rewrite in mid-September.”