The taxpayer incurred shipping costs by a freight company to transport soya beans from South Africa to Dubai. Does the shipping costs constitute a zero-rated taxable supply?
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The VAT Act Section 11(2)(a)(ii) of the VAT Act zero-rates transport of goods or passengers between South Africa and export countries. Application of the principles Charges for the transport of any goods from South Africa to any foreign country is a zero-rated supply in terms of section 11(2)(a)(ii) of the VAT Act.