ANNOUNCEMENT 02 May 2014

In May 2014, the government of South Africa announced a change in the tax legislation for exporters.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Diane Seccombe (Mazars) for TaxStudents on 17 June 2014, 'New VAT Regulations open Africa for SA business': http://taxstudents.co.za/new-vat-regulations-open-africa-sa-business/

EY Indirect Tax Alert of 9 May 2014, "South Africa issues new VAT rules relating to the exportation of goods": http://www.ey.com/GL/en/Services/Tax/International-Tax/Alert--South-Africa-issues-new-VAT-rules-relating-to-the-exportation-of-goods

SARS Regulation 316, published in Governmental Gazette nr. 37580 of 2 May 2014: http://www.sars.gov.za/AllDocs/LegalDoclib/SecLegis/LAPD-LSec-Reg-2014-05%20-%20Regulation%20R316%20GG%2037580%202%20May%202014.pdf


Inception date: 02 May 2014 | Removal date: open ended
Still in force

Tax-based export incentive

On 2 May 2014, the South African Revenue Service issued Regulation 316 listing the new rules under which indirect exports may be zero-rated or when a recipient is entitled to a Value-Added Tax (VAT) refund when goods are exported.
 
In Section B of Part 2 of the VAT Act, an indirect export of goods via road or rail can be zero-rated. Previously, export incentives did not include a zero-rating for transport by road or rail, only by sea or air. This representeda disadvantage for exports into Africa, since most goods are transported by road or rail.

AFFECTED PRODUCTS

 
020130 020230 020311 020319 020321 020329 020712 020714 030232 030234 030244 030247 030254 030341 030353 030354 030366 030383 030389 030444 030474 030489 030492 030495 040110 040120 040140 040150 040210 040221 040229 040291 040299 040310 040390 040410 040490 040510 040520 040630 040690 040711 040719 050400 070110 070190 070200 070310 070610 070993 070999 071010 071080 071090 071310 071333 071339 080310 080390 080410 080420 080430 080440 080450 080510 080520 080540 080550 080610 080620 080810 080830 080910 080930 080940 081020 081040 081070 081090 081190 081310 081340 081350 090111 090112 090121 090122 090190 090210 090230 090240 100111 100119 100199 100510 100590 100710 100790 110100 110220 110290 110313 110423 110710 110812 120242 120810 120991 120999 121410 121490 130219 150710 150790 151110 151190 151211 151219 151229 151590 151620 151710 151790 151800 410320 410711 410712 410792 420212 420219 420221 420229 420292 420299 420330 520100 540412 540710 540791 550130 550320 550340 551423 560210 560790 560890 570500 591190 610120 610329 610339 610342 610343 610349 610443 610449 610463 610510 610590 610690 610711 610821 610910 610990 611030 611090 611120 611130 611190 611241 611490 611595 611596 611599 611780 620319 620339 620342 620343 620349 620422 620439 620442 620449 620452 620453 620459 620462 620469 620520 620530 620590 620630 620640 620690 620920 621040 621210 630140 630190 630221 630222 630231 630239 630260 630312 630510 630533 630539 630590 630622 630629 630630 630710 630790
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