South Africa’s Export Regulations have been amended to recognise certain licensed terminal operators as recipients of goods awaiting export, enabling vendors to satisfy one of the conditions for elective VAT zero-rating.
The amendment changes only Regulation 8(2)(e)(ii) under Part Two, Section A of the regulations. All the other requirements governing the application of the zero rate remain in place.
Under Regulation 8(2)(e), a vendor may elect to apply the 0% value-added tax (VAT) rate when movable goods are supplied to a qualifying purchaser or registered vendor and the goods are situated at a designated harbour or airport, delivered to one of the specified parties and destined for export from South Africa.
National Treasury and the South African Revenue Service (Sars) amended the list of specified parties to include terminal operators operating under a port authority licence issued in terms of sections 57 and 65 of the National Ports Act.
Previously, Regulation 8(2)(e)(ii) required the goods to be delivered to the port authority, the master of a ship, a container operator or the pilot of an aircraft, or to be brought within the control area of an airport authority.
National Treasury said the wording created practical difficulties where goods were delivered to a privately operated terminal rather than to the port authority.
It cited Richards Bay Coal Terminal (RBCT), which is privately owned and operates coal terminals within the Richards Bay harbour precinct under a licence from Transnet National Ports Authority (TNPA).
“In terms of the strict interpretation of the wording of the export regulations, to qualify for zero-rating, the coal must be delivered to the port authority, which would be TNPA not RBCT,” National Treasury said.
“However, since TNPA does not run the terminal, this requirement has become difficult to fulfil.”
The amendment means delivery to a qualifying licensed terminal operator may satisfy the delivery requirement in Regulation 8(2)(e)(ii). It does not mean that delivery alone qualifies a supply for zero-rating.
The amendment was published on August 25 and is deemed to have taken effect retrospectively from April 1, 2026.
