VAT RELIEF MEASURES FOR ESSENTIAL SERVICES
The South African Revenue Service has determined that businesses that import essential goods, as defined in the regulations, do not have to pay VAT on these imported goods.
However, when the same essential goods are resold locally, the normal VAT rules apply.
The purpose of this regulation is to assist with the cash flow of these businesses, as they now do not have to set-off the VAT paid on imports against the VAT charged on sales, but can simply pay over the full VAT on sales to SARS.
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