VAT Refund on Exported Goods - Q&A

VAT Refund on Exported Goods – Q&A

What is VAT on Exported Goods?

Vat on Exported Goods is a form of VAT (Value Added Tax) which can be claimed by qualifying purchasers on movable goods. These goods must be purchased and exported from the RSA.

Who is it for?

A qualifying purchaser is defined by SARS according to the VAT Export Incentive scheme as the following:

Non-resident. An individual who is not a South African passport holden, who is not in the country at the time of supply. He or she is a permanent resident of an export country and ordered movable goods from South Africa. These goods were exported on their behalf by a qualifying purchaser’s cartage contractor.
Tourist. A person who is not a South African passport holder that traveled to the country on a non-resident travel document. They export movable goods from South Africa in accordance with the provision of the VAT Export Incentive Scheme. The individual is a permanent resident of an export country, who is on a temporary visit to South Africa.
Foreign Enterprise. An enterprise or business which is carried on continuously or regularly by any person in an export country in the course of where goods and services were supplied to any other person or business for a consideration.
Foreign Diplomat. A diplomat who has been stationed in South Africa. This individual is permanently departing from the country on at the end of his or her term of duty. They export movable goods in accordance to the VAT Export Incentive Scheme.

What requirements must be met before an application can be sent in for a VAT Refund on Exported Goods?

  1. The goods must be exported from the country within 90 days from the date of the tax invoice.
  2. The total of all purchases that are exported at one time, must exceed R250.
  3. The request and the relevant documentation must be received by the VRA within three months of date of export.
  4. The goods must be exported from South Africa through one of 43 designated commercial ports by the qualifying purchaser. If goods are exported through a port of exit other than designated port of exit, all customs declaration must be processed 24 hours prior to arrival at the port of exit and the goods will be examined by the South African Police Service.