The Value-Added Tax (VAT) system in South Africa is a multi-stage tax on the consumption of goods and services. It is also a destination based taxed, i.e. taxed in the country of consumption. For example, goods and services exported from South Africa may be zero-rated; or goods and services imported into South Africa may be subject to VAT on importation.
There is another level of complexity in ensuring the correct VAT treatment of the international supply of goods and services. The purpose of this webinar is to provide the participant with an understanding of the key VAT principles that comes into play when transacting cross-border.
The session will cover:
- Importation of goods
- Who is liable for VAT on importation of
goods?
- Customs value of goods imported.
- Whether Customs VAT paid on the importation of goods may be claimed as input tax.
- The documentary requirements to substantiate an input tax deduction for VAT paid on importation of goods.
- Imports by agents on behalf of a foreignsupplier.
- “Imported services”, including the VAT principles in respect of foreignsuppliers of electronic services.
- Export of goods
- Meaning of “exported”.
- Difference between direct and indirect export of goods.
- Requirements to zero-rate the direct export of goods under Interpretation note 30.
- VAT treatment of indirect export of goods under Regulation 316.
- VAT 201 return.
- Export services with a focus on the zero-rating of services supplied
to non-residents.
- Supplies to a foreign independent branch.
- Recent amendments to the VAT Act impacting cross-border transactions.
