Use Your South African Tax Invoice(S) to Settle Import VAT in Swaziland

SEKULULA/VAT Easy

Use Your South African Tax Invoice(s) to Settle Import VAT in Swaziland

WHO QUALIFIES?

1. COMMERCIAL IMPORTERS

· Commercial importers based in Swaziland who purchase goods in cash from VAT registered vendor in South Africa.

· Importers who are registered with SARS as an importer/exporter.

NOTE: Visit the South African Revenue Services (SARS) website for registration information.

Important Note:

The Swazi importer should nominate a South African agent registered by SARS. This could be a SARS clearing agent.

2. NON-COMMERCIAL IMPORTERS

· Any Swaziland resident who has purchased goods from a VAT registered vendor in South Africa.

· Individuals importing goods for own use and not intended for re-sale, gifts, exchange or any other commercial activity; such goods are classified as Commercial declarations.

HOW DOES IT WORK?

1. COMMERCIAL IMPORTERS

· Pay the VAT due when purchasing goods from a VAT registered vendor in South Africa.

· Cite the Swazi importer as “exporter” when completing the declaration forms for both South African and Swaziland Customs.

· Upon entry into Swaziland:

o Declare the goods to SRA Customs (on ASYCUDAWorld);

o Submit claim documents to SRA Customs, which include

§ CN1& CN2 (South African Customs declaration forms)

§ SAD 500 form

§ VAT Refund Envelope

§ Valid South African tax/VAT invoice(s); these MUST be originals

§ Proof of payment for purchases above E10, 000.00.

o SRA Customs officials will check the submission to ensure that it meets all procedural requirements; once satisfied that all is in good order, the declaration will have been completed and you may take your goods home without having to make any payment.

2. NON-COMMERCIAL IMPORTERS

· Pay the VAT due when purchasing goods from a VAT registered vendor in South Africa.

· It is not a requirement that the invoices and goods being imported be presented South African Customs for purposes of Sekulula. SARS may however randomly request that they be presented to them.

· Upon entry into Swaziland:

o Declare the goods to SRA Customs using the Personal Baggage Declaration Form (Form E) and attach the original valid South African tax / VAT invoice(s) to the form;

o Submit the completed Form E and attached invoices to SRA Customs;

o For purchases worth more than E10, 000.00, also submit a proof of payment with respect to such purchase.

BORDERS IN WHICH SEKULULA IS APPLICABLE

Sekulula VAT Easy is applicable ONLY in the following border posts

· Ngwenya Border Post

· Lavumisa Border Post

· Mahamba Border Post

· Matsamo Border Post

· Mananga Border Post

· Sandlane Border Post

FEATURES OF A VALID SOUTH AFRICAN TAX /VAT INVOICE?

The following must appear on the invoice(s)

· The words “Tax Invoice” or “VAT Invoice”.

· An invoice number and date.

· The name and address of the South African vendor.

· The vendor’s South African VAT Number.

· A clear description of the goods purchased and the price charged for each.

· The VAT amount or rate (in %) charged to the purchase.

· The Swaziland importer’s name and address for invoices in excess of E5,000

Important note:

1. Invoices in excess of E10, 000 must have proof of payment.

If any of the above is not adhered to, the attending SRA Customs Officer will reject the declaration for Sekulula/VAT Easy purposes.

WHAT ARE THE BENEFITS?

· VAT is not paid twice – VAT paid in South Africa on purchase of goods will be claimed by the SRA on behalf of the importer of the same goods; the refund received will be used to pay the VAT that would ideally have been paid when importing the goods into Swaziland.

· The incentive of not having to pay anything when importing goods into Swaziland is envisaged to encourage importers to declare goods purchased in South Africa on which VAT was incurred. This will increase the country´s VAT and SACU revenues.

USEFUL INFORMATION

· For convenience, collect a VAT Refund Envelope from SRA Customs before leaving Swaziland.

Non-commercial importers are advised to collect the Personal Baggage Declaration form (Form E) and complete it before returning to Swaziland.

· Where an importer may need the tax invoice, for warranty, guarantee or booking keeping purposes, request that the South African supplier issues a duplicate or make your own copy.

· Request the South African supplier to include the importer’s name and address for invoices in excess of R5, 000.

· Attach a proof of payment for invoices in excess of E10, 000.00. A proof of payment may include:

o A cash receipt, which confirms that goods have been paid for in full.

o A speed-point/point-of-saleprintout, where payment has been by credit or debit card.

o A bank generated proof-of-payment, where payment has been by any of the bank modes, e.g. EFT.

o ATax/VAT Invoice, which clearly indicates that the purchase has been in cash.

· The goods must be brought into Swaziland no later than 90 days from the date of invoicing.

· Swaziland VAT registered vendors, with full deduction rights may claim the VAT paid in South Africa as input tax on their return. Such importers are advised to maintain SRA endorsed invoices for record purposes.

EXCLUSIONS

· Travellers who are not legally resident in Swaziland

· Goods purchased from non VAT registered suppliers in South Africa

· Goods on which no VAT was paid in South Africa

· Goods consumed (in part or in full) in South Africa

· Invoices issued with respect to services rendered in South Africa

· Goods imported through non-commercial border posts (all those that have NOT been listed above) and the airports.

IMPORTING SECOND HAND GOODS, MOTOR VEHICLES AND/OR GOODS PURCHASED ON CREDIT

· Declare goods and pay import VAT on entry.

· Complete SRA remittance form.

· The importer’s bank details as shown on the remittance form must be endorsed/confirmed by the relevant bank.

· Submit claim documents to SRA within 60 calendar days from date of invoice.

o For motor vehicles the claim must be accompanied by:

§ Proof of payment;

§ Proof that the vehicle has been registered in Swaziland; and

§ Customs Clearance Certificate

o For goods bought on credit (regardless of the value) the claim must be accompanied by proof of payment.

NOTE:

· Individuals importing motor vehicles are required to be registered with SARS and nominate a SARS registered agent (information on the registration process available on SARS website)

· Claims are forwarded to SARS for processing and payment.

· Claims with respect to motor vehicles and second hand goods are subjected to an audit by SARS prior to issuance of the VAT refund.

· The VAT refundable on second hand goods MAY be below the VAT paid.

· Upon receipt of the refund from SARS, SRA immediately remits the amount paid into the importer’s bank account.

For more information visit www.sra.org.sz ; e-mail- or call 24064050