SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 8 OF 1998

30 SEPTEMBER 1988

VALUE-ADDED TAX: COLLECTION OF VAT ON IMPORTS FROM BOTSWANA, LESOTHO, NAMIBIA AND SWAZILAND AND THE INTRODUCTION OF A NEW VAT EXPORT INCENTIVE SCHEME

SARS earlier announced that certain measures were to be introduced to counter various harmful cross-border activities, including VAT evasion and fictitious exports of goods. SARS has since then been engaged in establishing the necessary infrastructure as well as the training of Customs officials.

Notice was accordingly given to all vendors that:

• As from 1 October 1998 the present VAT Export Incentive Scheme would be withdrawn; and
• VAT would be collected at designated commercial ports on imports from Botswana and Namibia from 1 October 1998, and those from Lesotho and Swaziland from 1 November 1998.

In response to several representations SARS has agreed not to introduce these measures on 1 October 1998. This will provide an opportunity for further consultation between SARS and stakeholders, as well as providing more time for importers and exporters to make the necessary adjustments to their systems. It follows that the existing VAT Export Incentive Scheme remains in operation until further notice.

Importers and Exporters are urged to use the weeks ahead to familiarise themselves with the new arrangements and to contact SARS should any assistance be required.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA

Contact persons:

Robert Sandla
Fax:(012) 325-7992