Under the current VAT Export Incentive Scheme, a VAT vendor can export movable goods to a qualifying purchaser at a zero VAT-rate. This Scheme is subject to certain requirements, including providing proof of payment within two months from the date that the VAT invoice was issued.

Because SARS can only extend this period by a further four months, a scenario may arise where an exporter must pay output VAT in respect of a sale that is essentially zero-rated, simply because payment will be received more than six months after the invoice.

National Treasury recently published a revised draft VAT Export Incentive Scheme. One proposed amendment extends the period within which to obtain proof of payment to 24 months, where the exporter has SARB's approval to defer payment until 24 months after date of export. This will resolve problems such as those mentioned above. Legislature is considering public comments on the draft Scheme at the moment.

Sources:
Briefing note on the draft export regulation
Regulations issued in terms of the VAT Act
General Notice regarding Export Incentive Schemes

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