South Africa amends export regulations for VAT zero-rating

South Africa’s National Treasury and the South African Revenue Service (Sars) have amended Export Regulations to include licensed terminal operators as recognized recipients of goods awaiting export. This change allows vendors to satisfy the delivery requirements necessary to qualify for elective VAT zero-rating.

The amendment addresses practical difficulties caused by the previous wording of Regulation 8(2)(e)(ii). Previously, goods had to be delivered to a port authority, a ship's master, a container operator, an aircraft pilot, or within an airport authority's control area. This created issues for privately operated terminals, such as the Richards Bay Coal Terminal (RBCT), which operates under a license from the Transnet National Ports Authority (TNPA) but is not the port authority itself.

Under the new regulations, delivery to a qualifying licensed terminal operator will satisfy the requirement for zero-rating movable goods destined for export. All other existing requirements for applying the 0% VAT rate remain unchanged.