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Thread: Proforma and SARS

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    Proforma and SARS

    Hello Everyone

    Just need help l'm an Export Manager here in Paarl South Africa my qn is.

    We have been congnsining goods from Europe to SA for a while now and we have been using a Proforma invoice. The problem comes now, you can not claim import VAT on a proforma so they requested me to use a commercial invoice. l cant use a proforma invoice as it inflates our assets in the books according to the accountant. We pay for these artworks after sale. Please help, which shipping documentation should l use so that l dont enter the shipment into the books. Take note that l can clear goods using a proforma but l cant claim import VAT. l cant use a commercial invoice as it inflates our assets. Tried to get hold of customs but they are not giving me a clear answer to this please help

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    Wanted to say l cant use a commercial invoice as it inflates our assets

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    I have not imported for a while, but from what I understand with respect to when I import goods, is that the VAT is paid over to the shipping company when they clear the goods at customs, who then pay it to SARS on your behalf. They then issue an invoice, which has some amount for their clearing charges, a VAT amount on their charges, and a separate entry for the VAT on the imported goods, which is not 15% of their charges, but the VAT paid to SARS on your behalf for the respective goods. They will not clear/release the goods until the VAT payment has been received by them.

    This is now a VAT invoice, which can be used to claim the VAT you have paid.
    This may be a challenge on some accounting systems, which are set up to automatically calculate the 15% VAT on the final value.

    The overseas invoice is not a valid document to claim VAT off since it does not follow the local SARS regulations.
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