HomeHome SearchSearch MenuMenu Our productsOur products

Volkswagen SA is working full steam ahead to meet export demand! Use these top export Vat tips to make sure your exports go smoothly

by , 22 July 2013
Volkswagen SA is living the dream: Demand for its product is so high, the company is working three shifts for the whole year just to keep up with hungry consumers! But exporters like Volkswagen SA face special challenges, like export Vat. Here's how you can come out on top of export problems with these handy tips...

Fin24 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 at 0%.

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.

Related articles

Related articles

Watch And Learn

Related Products


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance

Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today

Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism

This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands

Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>