Businesses importing essential goods won’t have to pay value-added tax (VAT) on these items as per regulations released by the SA Revenue Services (Sars).
According to Gerhard Papenfus, chief executive of the National Employers’ Association of South Africa (Neasa), the determination is in keeping with coronavirus relief measures.
“However, when the same essential goods are resold locally, the normal VAT rules apply,” he said.
“The purpose of this regulation is to assist with the cash flow of these businesses, as they now do not have to off-set the VAT paid on imports against the VAT charged on sales, but can simply pay over the full VAT on sales to Sars.”