VAT Treatment of Second-Hand Goods Export in South Africa

• Second-hand goods exported from South Africa by VAT-registered vendors have different VAT treatments depending on whether notional input tax was claimed and who handles the export
• Notional input tax allows VAT-registered vendors to claim input tax on second-hand goods purchases even when the seller is not VAT-registered, calculated as 15/115 times the purchase price or open market value, whichever is lower
• This mechanism ensures VAT is only paid on the value added by the vendor rather than the full selling price, since the original buyer already paid VAT as the final consumer
• To claim notional input tax, vendors must be VAT-registered, acquire goods in a non-taxable transaction for business purposes, and obtain a signed VAT 264 declaration with seller details, goods description, consideration, payment proof, and supplier declaration
• Vendors can apply zero-rate VAT on movable second-hand goods that are exported by either the vendor or another party

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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