Page 38 - P6 Slide Taxation - Lecture Day 3 - VAT Part 1

Indirect export [def par (d) and s

Indirect export? 11(1)(a)(ii)]

• Non-resident (or his cartage contractor) takes delivery in RSA in

terms of EIS (Export Incentive Scheme)

• Ownership ∆ in SA (in effect not an export).

• As result a supply takes place at std. rate(14%) [s

11(1)(a)(ii)(aa)].

• If the receiver of the goods (non-resident) takes the goods out

of RSA, and indirect export takes place. VAT @ 14% must be

paid back to the receiver of the goods.

.