SARS tightens up on zero-rated exports

THERE HAVE been certain amendments to the VAT Act which relate to "zero-rated" exports under the incentive scheme.
These, said SARS, are intended to tighten up on areas of possible fraud and to improve the Receiver's VAT receipts.
There are two areas where zero-rating applies, according to Debbie Nortje of Hellmann Worldwide Logistics.
"Where the RSA vendor 'consigns or delivers the goods to a recipient outside SA' is one. The other is where the goods are delivered to a carrier with whom the vendor has entered into a contract to effect delivery of the goods - and is liable for the full cost relating to the delivery."
Otherwise, Nortje added, the vendor must "standard rate" the goods (currently 14%).
However, there is provision in the act for the recipient or "qualified purchaser" to claim back the VAT.
"To clarify we believe that - unless the vendors sell on a C or D (Inco 2000) basis - they must standard rate their invoices. This would apply to EXW/FAS/ FOB/FCA sales."