VAT Refund South Africa | Who Can Claim it and How?

VAT value-added tax in South Africa is currently set at 14%. It is included in goods and services price. Well, foreign visitors are not exempt from VAT charges when they purchase any goods in the country.

But they can claim back the VAT they have paid on goods they have bought within the country when taking them out of the country. There are certain rules and regulations one should know about when it comes to refunds.

VAT refund in South Africa, what it is, who can claim it, and other relevant information! This is what we are going to discuss here in this article.

What is VAT Refund and Who Can Claim It?

VAT refund is the value that one can claim back on items when he takes them out of the country (South Africa) and the total value exceeds R250 on those goods that he is taking out of South Africa. There are different methods via which you can lodge VAT refunds.

You can lodge it with the VAT refund administrator’s office located in Cape Town and Johannesburg International Airport and designated commercial harbors. Only those who are taking goods of total value more than R250 can lodge for a VAT refund.

Moreover, foreign passport holders who travel to South Africa with a non-resident travel visa and take the movable goods out of South Africa can claim for VAT refund. This opportunity is not for South African passport holders. Here is what you have to do to claim your refund.

Claiming Your Refund

To claim for the VAT refund you have to identify yourself as a tourist and request a tax invoice on the goods you have purchased within South Africa. First, you need to make sure that the tax invoice has the following information in it. It should have information about,

VAT value that is charged
Quantity and details about the purchased goods
Buyer’s name and address
Serialized tax invoice number

You need an original invoice reflecting the information mentioned above to claim for VAT refund. Moreover, you must hold a foreign passport that should reflect the country that you live in other than South Africa.

After arranging all of these things, what you have to do is present the tax invoices with all the goods whose VAT refund is claimed when departing from South Africa. You have to provide all of the goods and documents to the VAT refund administration so that they can inspect and check on the tax invoices.

After completion of the check and inspection, you can get the refund value easily. In case you are unable to claim VAT at the airport, here is what you have to do.

You can submit the following mention documents to the VAT refund administration so that they can consider your claim. You have to submit,

A letter that should tell about your circumstances and why you are unable to follow the procedure mentioned above.
You have to submit your passport copy that should have dates mentioned when you entered and when you left South Africa.
Moreover, you also have to submit the original invoices that should have stamps either from the South African airport while departing or while arriving at US airports on your arrival back.

Then you have to send these documents to the address mentioned below.

VAT Refund Inquiries

PO Box 107
Johannesburg International Airport, Post Office,
South Africa

How To Fill VAT 201 Form?

To fill VAT 201 form online you have to register yourself with SARS
Then you have to log in using a username and password.
After logging in you have to register for e-filing for VAT purposes.
To do that you have to click on “Organization” from the menu option and then click on “Organization Tax Types”.
A list will open in front of you then you have to click on VAT 201.
It will ask you to enter your reference number and the tax office of your business. You have to provide the correct details.
After activating, the VAT return is successfully activated in the status bar.
To file the VAT returns the business then has to select returns issued and then have to click on VAT 201.
In this way, you can submit an electronic VAT return.
Make sure to provide correct details to avoid any mistakes when filling out the form.

Who can claim for a VAT refund?

A qualifying person can claim a VAT refund in respect of the value-added tax charged at 15%. A qualifying purchaser could be a tourist or foreign diplomat, a non-resident of South Africa, or a foreign enterprise.

Does VAT apply to sole traders as well?

Yes, if the sole traders are earning more than £85000 which is the VAT threshold then they should register for VAT. Keep in mind whether you are a sole trader or working in a partnership it does not exempt you from VAT. The only thing to consider to be eligible for VAT is that your company’s VAT falls above the VAT threshold which is £ 85 000.

Can tourists claim VAT back in South Africa?

Yes, foreign visitors who visit South Africa can claim back the VAT they have paid on the goods they are taking out of the country. But before applying they must make sure that the total value of those goods exceeds R 250 to apply for VAT refund in South Africa.

Hopefully, you have understood this article that tells you about the VAT refund in South Africa and how you can apply for it. This article tells you about the details related to VAT refunds, who is eligible, and how you can apply for refund information. Pay attention so you can have an idea about how you can claim the refund value and get back the VAT you have paid on goods purchased within the country when taking them out of the country.