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
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.