2010-05-13 - Changes to Import/Export VAT Reporting

A note from SARS 

With regard to the SARS article below you can now access the draft form here: http://www.sars.gov.za/home.asp?pid=194

Dear Vendor 

INTRODUCTION OF THE NEW VALUE-ADDED TAX (VAT) RETURN FOR THE REMITTANCE OF VAT (VAT201) FORM 

Over the past three years, the South African Revenue Services (SARS) has been modernizing and simplifying tax processes in line with international best practice. Improvements are being made continuously as we aim to better our service standards and increase efficiency and compliance. 

One of the aspects of compliance that SARS wishes to address is the declaration and payment of Value Added Tax (VAT) in respect of the import and export of goods. 

Consequently SARS will be making changes to the VAT 201 aimed at addressing SARS’s efficiency regarding risk assessment and tax compliance. The new form will be available shortly and the current form must be used in the meantime.

The changes to the VAT 201 will impact all vendors, specifically vendors involved in import and export of goods. These vendors will now be required to indicate separately on their declarations all transactions involving the import and export of goods. This requirement will serve to inform and enhance SARS’s risk assessment across the different taxes administered by SARS.

The new VAT 201 form will include;

·       A field (Field 2A) indicating zero-rated supplies of all goods exported from the Republic of South Africa

·       A field (Field 14A) for the calculation of input tax that applies to capital goods imported in respect of which a valid release document is held.

·       A field (Field 15A) for the calculation of input tax that applies to non-capital goods imported in respect of which a valid release document is held.

·       A Customs Code which will serve as the exporter’s/importer’s code, linking information declared for Customs purposes to the information declared for VAT purposes. 

Kindly note that in the event of field 2A, 14A and 15A having been completed, it will be mandatory to fill in your Customs Code. 

Importantly, these changes could necessitate changes to the vendor’s accounting systems which will facilitate reporting on transactions that involve the import and the export of capital and non-capital goods. 

Next VAT Act & Export Course with available seating in Bedfordview - 15th September (Click here for details and booking info)

Export Risk Management Conference -  19 -22 October (Click here for details and booking info)

With regard to the SARS article above you can now access the draft form here: http://www.sars.gov.za/home.asp?pid=194