What does the Interpretation Note No 31 mean?
In a nutshell, it stipulates what documentary proof is required, when you zero rate supplies of goods or services (Section 11 (1), (2) & (3)).
What docs do you need?
Some of the requirements include:
On goods supplied to a foreign-going ship:
- Proof of export on which the aircraft’s pilot, ship’s captain or a responsible person appointed by the pilot or captain, signed acknowledgement that he/she received the goods.
- Proof of payment
Goods that form part of a repair service temporarily admitted into South Africa from an export country:
- The original, relevant Customs forms; and
- Proof of payment.
With goods used exclusively in an export country or in a customs-controlled area (CCA) of an industrial development zone (IDZ), additional requirements can include:
- Proof of payment; and
- In the case of use in an export country, proof of export or proof the movable goods are situated outside the Republic at the time of supply; or
- The relevant Customs documents
There are also some important additions in the case of zero-rated services you supply. Study Interpretation Note 31 (Second Issue) and let me train your staff on it.
I don’t want you to have to pay VAT, interest and possible penalties on legitimate zero-rated supplies just because you don’t have one or two of the required documents.