7 Documents you must keep to zero-rate your supplies on your Vat return
Tags: vat on zero-rate supplies, what is 0% vat, can i claim zero-rate vat on this? zero-rate supporting documentation, where do i complete zero-rating on my vat return
One of our subscribers confirmed this yesterday, when she sent me an email asking about which documents to submit together with her Vat return to claim her with her zero-rating supplies.
Let’s look at her question...
Jenny’s Beads manufacture jewellery in Johannesburg. They export 90% of the manufactured products. She wants to know if she can zero-rate these goods when she exports them.
Yes Jenny, you can. But you must keep piles of documents to substantiate your zero-rating claims to SARS. Let’s find out what these documents are.
What is a Zero-Rated Supply?
What is a Direct Export?
When the seller of the goods (South African Vat vendor) delivers or arranges (and pays for) delivery for the goods to a clients address in a foreign country himself. In this case, Vat is levied at zero percent!
Checklist of 7 essential documents to keep for zero-rated supplies
- The order or contract of sale between you and your foreign client
- Your copy of the zero-rated tax invoice
- Copy of a VAT262 for or VAT266 form, with the original Customs and Excise stamp on
- Customs export documentation – eg. CCA1, SAD 550
- As from 15 March 2006, a copy of the Customs export or removal document (DA74)
- Proof that your foreign client received your goods, e.g. a signed delivery note
- Proof of payment.
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