EXPORT GOODS TO ZIMBABWE

[Tina Wood]

hI aLL

WHAT IS THE RULES TO CHARGE VAT ON EXPORT GOODS TO A COMPANY IN HARARE

1. COMPANY FROM HARARE COLLECTS GOODS FROM SUPPLIER IN GAUTENG - OWN TRANSPORT.
2. COMPANY USE A TRANSPORT COMPANY FROM HARARE TO COLLECT GOODS FORM SUPPLIER(GAUTENG)
3. HARARE (COMPANY) USE A TRANSPORTER FROM SOUTH AFRICA.
THANKS
TINA

[CLIVE-TRIANGLE]

It's tricky but as far as I know, in 1 and 2 of those cases VAT is charged at 14% and the foreign company is able to obtain a refund from SARS.

In the 3rd case, I am not sure. If YOU arrange transport, it is zero rated. I suspect if they arrange transport, it is not.

For it to be zero rated, the goods must be consigned or delivered by the vendor to the recipient at an address in an export country.

Read Sec 1 (for the definition of export) and Sec 11 of the Act., which deals with how the VAT is imposed.

If all else fails check with SARS.