ANNOUNCEMENT 02 May 2014In May 2014, the government of South Africa announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
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
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.