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Value-Added Tax Act, 1991 (Act No. 89 of 1991)


Export Incentive Scheme

Part One: Procedures for Granting of Refunds of Tax to Qualifying Purchasers Residing in or Conducting Business in Export Countries

1.5 The Refund


The refund in terms of section 44(9) of the Act can be effected by the VRA on departure or forwarded to the qualifying purchaser.


The refund cheque which will be issued in RSA currency, will be valid world-wide (except in the RSA) for a period of three months from the date of issue: Provided that in the case of Botswana, Lesotho, Namibia or Swaziland the cheques will be valid only in the country of residence of the claimant and in the case of Botswana, refunds will be in the currency of that country.


If all the requirements have been met at the time of departure from one of the designated commercial ports where the VRA is present (see paragraph 1.4.2) a refund limited to an amount as determined by the Commissioner may be paid immediately by the VRA office at that designated commercial port.


Where —

the claim is for a higher value than that as determined by the Commissioner;
the VRA has decided that the claim must first be authorised by the Commissioner;
a claim is handed in to a Customs Official at a designated commercial port where the VR4 is not present;
the claim is a claim as described in paragraphs 1.3.3 or 1.3.4;
the claim is in respect of second-hand goods; or
the claim is in respect of registrable goals,

the refund will be forwarded to the qualifying purchaser by the VRA.


The cheque will be issued and forwarded to the address on the VAT 255 or as stated in the qualifying purchaser's letter, only after:

the Commissioner has approved the claim; or
the Commissioner has determined the amount refundable in the case of second-hand goods (if the movable goods consist of second-hand goods and a notional input tax credit was claimed by the RSA vendor or any other person who is a connected person in relation to the vendor, when the goods were acquired, the refund will represent only the amount of tar in excess of the notional input tax claimed. These principles are contained in the proviso to section 11(1) of the Act read with the provisions of section 10(12) of the Act and must be applied in these circumstances); or
proof of registration in the export country concerned (in the form of a copy of the registration certificate, certified by a commissioner of oaths), is submitted to the VRA in the case of registrable goods.