SARS pockets R18-m for unpaid export VAT

A RECENT R18-million payment to SA Revenue Services for unpaid export VAT should serve as a wake-up call to retailers regarding their legal liability. An investigation into the affairs of retailer Massmart revealed that some of its customers had reneged on their VAT payments claiming that goods purchased were to be exported when in fact they never left the borders of South Africa. Since SARS' first right of recourse is to the party responsible for collecting the VAT, Massmart was required to cough up the full amount. It will however attempt by legal means to reclaim the unpaid VAT from its customers.