South Africa Tax Agency Clarifies VAT Treatment for Agents Importing Goods for Nonresident Principals

The South African Revenue Service March 31 issued VAT Ruling No. VR 017, clarifying VAT treatment for agents importing goods for nonresident principals. The taxpayer, a resident VAT-registered art auctioneer, imported artwork for unregistered nonresident owners and sold it as an agent at South African auctions to resident and nonresident buyers. The taxpayer sought clarification on VAT treatment. Upon review, the Tax Agency clarified that: 1) the taxpayer could deduct input VAT on the goods imported for nonresident owners, if documentation requirements were met; 2) the taxpayer was deemed to supply the artwork at a specified value under the VAT ...