- 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.
Source: sars.gov.za
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.
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