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Checklist: 19 zero-rated supplies you can give your foreign clients

by , 23 October 2014
If you sell supplies or services to foreign clients, you need to treat them as normal clients. This means you have to issue them tax invoices, but the type of invoice depends on the type of supplies you sell.

For example, if you sell zero-rated supplies, you can issue the tax invoice in the foreign currency. (Vat Act, Section 20(4).

But to do this, you need to know which foreign supplies are zero-rated. Otherwise, you might issue the wrong kind of invoice and end up with SARS penalties.

That's why we're revealing 19 of these zero-rated supplies...

 

Checklist: 19 Zero-rated supplies you can sell to foreign clients

 
1. Exports;
2. Business sold as a going concern;
3. Gold to the banks;
4. Certain agricultural goods;
5. Petrol and diesel;
6. Certain foodstuffs;
7. Gold coins not set as jewellery;
8. Paraffin;
9. Triangular supplies;
10. Land to the Minister of Land Affairs;
11. Duty free shops;
12. International transport;
13. Services to land situated in other countries;
14. Services to foreign going ships or aircraft;
15. Services to non-resident clients;
16. Intellectual property to non-residents;
17. Certain payments received from Government or municipalities;
18. Rates; and
19. Winnings paid to certain owners of racehorses.
 
Even if your goods are zero-rated, ensure you provide the correct invoices for these supplies to avoid administrative penalties from SARS. 
 
Here's why it's so important to correctly invoice these supplies.
 
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Here's why you must correctly invoice these 19 supplies

 
You must provide correct invoices for these supplies so SARS can see which of your supplies you didn't collect Vat on. 
 
This helps SARS ensure the amount of Vat you paid is correct.
 
So correctly invoice these 19 supplies to avoid problems with SARS.
 
Check out the Practical Vat Loose Leaf Service for more on zero-rated supplies.
 

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