Easier tax rebates for foreign tourists and businesses

The South African Revenue Service (Sars) has appointed an agency to facilitate rebates of the 15% value-added tax (Vat) charged on goods and services that is refundable to eligible non-South African travellers and foreign enterprises.

The Vat Refund Agency’s appointment became effective on 1 April.

Foreign companies and individuals can claim their 15% Vat refund by providing the required documentation and can make enquiries at designated locations – including the three major international airports (OR Tambo, Cape Town and King Shaka) as well as border post offices.

As per Sars regulations, the Vat refund only applies to the acquisition of goods by the qualifying purchaser and not on the acquisition of services.

Qualifying purchasers include tourists, foreign diplomats, foreign enterprises and non-residents of South Africa.

For foreign companies, the required documentation includes the company name, phone number, registration number, email, and details of the person claiming on behalf of the company. For individuals, the required documentation includes an original tax invoice, passport with an entry stamp, and proof of exporting goods through a designated commercial port or airport in South Africa.

The refund agency facilitates refund claims from an option of 19 currencies and claims a commission of 1.3%, deducted from the claim amount.

It also claims any incidental forex or transaction costs incurred in facilitating the payment of the refund, which is also deducted from the claim amount.