‘Unworkable’ VAT ruling under review

ALAN PEAT THE MUCH criticised demand from SA Revenue Service (Sars) for proof that exports have been cleared into the destination countries so that goods can be zero-rated for VAT is currently on hold. This follows meetings between the SA Association of Freight Forwarders (Saaff), customs, and members of Sars’ VAT legal team, where the topic of discussion was the proposed changes to the VAT Interpretation Note No. 30 - which has stirred up all the fuss in the export and forwarding and clearing industries. “How ever are we going to get a clearance note from import clients in African countries, for example,” said one complainant to FTW. “It’s an impossible demand.” But the VAT matter is moving forward, according to Saaff chairman, Philip Womersley, who described the meetings as “really exceptional”. Meantime, it can be accepted that there’s no need for exporters to have proof of clearance from foreign buyers.