The South African Revenue Service (SARS) has issued guidance concerning value added tax (VAT) rules in response to the coronavirus (COVID-19) pandemic.
In general, when the zero-rate is applied to the exportation of goods, the supplying vendor is required to obtain documentary proof to substantiate the application of the zero-rate. There are prescribed time periods within which the movable goods must be exported and the documentation in support of the export must be obtained. Non-compliance with these prescribed time periods will require the supplying vendor to account for VAT at the standard rate on the supply of the goods exported, unless beyond the control of the vendor.
Binding General Ruling 52 (BGR52)—issued on 26 March 2020—confirms that SARS considers the current COVID-19 situation to be “beyond the control of the vendor, qualifying purchaser, or the person duly authorised to represent the qualifying person” and officially extends the prescribed periods within which to export the goods by an additional three months.
Read a March 2020 report [PDF 103 KB] prepared by the KPMG member firm in South Africa
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