reports that Volkswagen SA will be working at full capacity to meet export demand. Talk about a big haul! While their bottom line will be smiling, there may be some hiccups along the way.
After all, the export market is no joke – especially when it comes to paying export Vat
Here are some tips from the Practical Vat Loose Leaf
to ensure your exports always go smoothly…
Export Vat tip #1: Classify your exports correctly
Make sure you're clear on whether you're doing a direct or indirect export.
When you export directly, you as the South African supplier arrange and pay for shipment to the foreign client. SARS levies direct export Vat
If your export is indirect, it means you're supplying the goods but the foreign buyer is either taking the goods out of South Africa himself, or is paying for delivery to his foreign country. Indirect export tax
is 14%, which the buyer is responsible for claiming back himself.
Export Vat tip #2: Keep your documents in order
When you apply for the 0% Vat
rate for a direct export, make sure you've got these papers to hand…
The contract of sale between you and the foreign client
Your zero-rated tax invoice
Your VAT262/66 form which was stamped by Customs
Customs export documents
Proof that the foreign client received your goods
Proof of payment
Export Vat tip #3: Stick to your time limits
Did you know that your goods must leave South Africa within a month of the date on your invoice? These are the little-known time limits that often get exporters in trouble. So make sure you find out all about the time limits that apply to you. If you think you can't meet the time limit, apply for an extension from SARS.
With these tips in mind, your exports should always go smoothly. So when that big order comes in that's got you working to full capacity like Volkswagen SA, you'll be confident all your export troubles are behind you.