Hi everyone,

I have a few questions regarding VAT and cross border transport.

Company A (VAT registered) - Provides transport services of goods within SA.
Company B (VAT registered) - Provides the goods and use Company A for transportation of the goods.

Normally the goods are transported by Company A within the borders of SA and Company A bills Company B for the transport and issues a tax invoice to Company B at 14%.

E.g.
TAX INVOICE ISSUED TO COMPANY B
Transport of goods: R100.00
VAT at 14%: R14.00
Total: R114.00


In exceptional circumstances, Company B wants a certain amount of goods transported across border.
Company A is unable to transport that amount of goods and use a subcontractor, Company C, to transport the goods across border to a SA registered company.

Company C bills Company A and issues Company A with a tax invoice at 14%.

E.g.
TAX INVOICE ISSUED TO COMPANY A
Transport of goods: R200.00
VAT at 14%: R28.00
Total: R228.00


Company A then bills Company B

TAX INVOICE ISSUED TO COMPANY B
Invoice received from subcontractor: R228.00
VAT at 14%: R31.92
Total: R259.92


Is the VAT treatment correct by Company A and Company C?

Does the VAT treatment change if the receiver of the goods across border is a Foreign registered company?


Regards
Trevor