The South African Revenue Service (SARS) has on 2 May 2014 issued a new regulation setting out the circumstances under which indirect exports may qualify for zero rating and explaining when a Value-Added Tax (VAT) refund may be due on the export of goods. An updated Interpretation Note 30 setting out the requirements for direct exports to qualify for zero rating was issued on 5 May 2014. The distinction between direct and indirect exports in the legislation depends on whether the supplier physically delivers the goods or uses the services of a third party to deliver to a recipient outside the country.
Most VAT systems apply zero rating to exports of goods but the definition of an export is not always straightforward. It is therefore normal for evidence to be required of the movement of the goods to demonstrate that they have left the country, in addition to the usual documents such as the invoice.
