12 Apr 2023

The law on Value Added Tax (VAT) in Botswana and worldwide provides that export of goods and services be zero-rated.

This was said by Minister of Finance, Ms Peggy Serame, when she was responding to a question in Parliament on Tuesday.

Ms Serame explained that when people purchased goods in South Africa, they were required to indicate that goods were destined beyond South African borders and therefore be zero-rated.

“If the zero-rate is not granted upon purchase of the goods, then the purchaser must, at the point of exit from SA, make a declaration of the goods where South African Revenue Service (SARS) will facilitate the refund of the VAT paid,” she said.

The minister said she was not aware of the numerous claims made to SARS and their lack of response on request for VAT refunds.

“I am aware that Batswana businessmen and women purchase various items and hardware in South Africa in which VAT is payable. I am also aware that this VAT refund is claimable at SARS at the point of exit,” she said.

Currently, she said there were no plans to assist Batswana traders to claim VAT paid and not refunded.

“However, to address the concerns, the ministry will, through the Southern African Customs Union, seek clarification from SARS on this matter,” she said.

Ms Serame indicated that since November last year, SARS had commenced implementing the online South African Traveller Declaration system which would simplify the process and provide efficiency for travellers.

As such, she said the ministry, in collaboration with that of trade and industry, would monitor the implementation of the system to address VAT refunds on cross-border goods for the business community.

Member of Parliament for Tonota, Mr Pono Moatlhodi had wanted to know if the minister was aware that Batswana businessmen and women purchased various items and hardware which attracted VAT in South Africa and was claimed by SARS.

Mr Moatlhodi also asked the minister if she was aware that SARS did not respond to the numerous claims submitted and therefore wanted to know if there were any plans to assist them to recoup their claimable VAT from SARS. ENDS