Sturrock

New VAT returns for S.A. vendors importing and exporting goods

Tuesday 22 June, 2010

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 Service (SARS) has been modernising 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 the 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 the import and export of goods. These vendors will now be required to indicate separately on their declarations all transactions involving the import and the 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 the 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 vendors' accounting systems which will facilitate reporting on transactions that involve the import and the export of capital and non-capital goods.

Payments can be made over the counter or electronically via ABSA, Standard Bank, Nedbank or First National Bank. Please use the full name, "South African Revenue Service," and not the abbreviation, "SARS," when making cheque payments.

For time-saving and hassle-free submissions, eFiling is just one click away. You can also use eFiling to submit your return and make payment.

For further information or assistance, please visit a SARS branch, call the SARS Contact Centre on 0800 00 SARS (7277) or visit www.sars.gov.za.

ISSUED ON BEHALF OF THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE