SAICA Updates Zero-rated VAT Exports Tax Guide

Posted 21 January 2026 Written by Acts Online
Category Tax

Brought to you by SA Accounting Academy: The South African Institute of Chartered Accountants (SAICA) has published an updated guide to assist vendors in navigating the procedural and documentary requirements for zero-rating goods exported from South Africa.

In terms of section 11(1) of the Value-Added Tax Act, No. 89 of 1991, the sale of goods may be subject to VAT at the zero rate if those goods are exported to a country outside of the Republic. The Zero-rated VAT Exports Tax Guide (Version 3) provides a technical overview of the criteria that must be met to qualify for this tax treatment, focusing on the distinction between direct and indirect exports.

The guide details the specific documentary evidence required by the South African Revenue Service (SARS) to justify the application of the 0% rate. Failure to produce the prescribed documentation within the mandated timeframes results in the transaction being deemed subject to the standard rate of 15%.

Key Compliance Areas

  • Direct Exports: Requirements for vendors who take responsibility for delivering goods to an export country, including the necessity of obtaining customs-stamped documentation and transport contracts.
  • Indirect Exports: Procedural steps for transactions where the foreign purchaser removes the goods from South Africa, governed by the Export Incentive Scheme.
  • Documentary Evidence: A breakdown of mandatory records, including valid tax invoices, Customs Release Notifications (SAD 500), and proof of payment.
  • Timeframes: The specific periods within which goods must be exported and the relevant documentation must be obtained (generally within 90 days of the invoice date).

Click here to download the Zero-rated VAT Exports Tax Guide.

What this means for you, your business, or your clients

  • For yourself: You must ensure you can distinguish between the documentary requirements for road, rail, air, and sea freight to provide accurate compliance oversight for export transactions.
  • For your business: Review your internal VAT control framework to ensure that all zero-rated export sales are matched with a completed SAD 500 and proof of payment within the 90-day window to prevent automatic VAT liabilities.
  • For your clients: Advise clients engaged in cross-border trade that SARS strictly enforces the documentation requirements; missing or invalid transport documents will lead to the denial of zero-rating and the imposition of penalties and interest.

Originally published at https://accountingacademy.co.za/news/read/saica-zero-rated-vat-exports-tax-guide

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