Understanding the Overpayment of VAT on Imported Goods: Legal Principles and Applicable Policies

Uncertainty regarding input tax deduction when clearing agent makes an error in calculating customs duty and VAT on imported goods
Clearing agent facilitates payment of import VAT on behalf of principal/importer
Only principal/importer can deduct VAT paid on imported goods for making taxable supplies
SARS will refund VAT overpaid on importation of goods in specific circumstances
If refund is not allowed, clearing agent may be out of pocket for VAT paid to SARS
Principal/importer must deduct VAT (including overpayment) on VAT return if none of the refund requirements apply
Documentation required for VAT deduction on overpayment of VAT
Agent must provide statement to principal with details of imported goods and tax paid
Principal must possess statement when submitting VAT return to SARS
Reimbursement of overpaid VAT should be addressed between agent and principal/importer
Clearing agents should not deduct VAT on their own VAT return
Refer to Binding General Ruling 66 published on 27 November 2023.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.