Zimbabweans cashing in on SARS VAT refund

Article By: Mashudu Netsianda
Date: 25 February 2011

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Scores of Zimbabweans passing through the Beit Bridge border post are cashing in on the South African Revenue Service´s (SARS) VAT refund facility that allows foreigners to make VAT claims for all purchases made in South Africa.
According to SARS, all foreign passport holders are entitled to a 15% VAT claim contained in their South African purchase receipt. The claims are made at the border upon leaving South Africa and SARS officers are expected to first examine the goods being exported, before putting an approval stamp on the cash slip.
The claimant can then proceed to the VAT office, which is also situated at the border. Here, they are issued with a cheque and an acknowledgement receipt. The cheque is, however, only transferable at the VAT cash office in Musina and other towns around South Africa. The VAT cash office charges a 20% fee.
When the Limpopo Mirror visited the border post last week, it was established that mostly Zimbabweans residing at Beit Bridge were capitalizing on the facility by purchasing receipts from other travellers who would not be interested in going through the tedious process of queuing to claim VAT refunds.
“We buy receipts from travellers who would be too busy to go through the process of queuing for VAT claims and we give them 50%. In fact, I eke out a living through this and even managed to buy a small car, which I use to come to the border every day,” said a VAT dealer, who identified herself as Miss Nomsa Dube.
Nomsa says she rakes in around R2 000 on a busy day, particularly during month-ends when there is an influx of shoppers passing through the border. Another VAT dealer, Mr James Mhlanga, echoed Nomsa’s sentiments.
“I come here every day. The SARS officers now know me and at times my passport is not even stamped because on a good day I bribe Home Affairs officials and police to allow me into South Africa without going through the normal immigration process,” he said.
Mhlanga added that he also operated at the Beit Bridge border post and had lots of clients. “You will realise that most of these SARS officers know us and therefore they let us claim without necessarily checking the purchased goods.”
During the Limpopo Mirror´s visit to the border, scores of Zimbabwean VAT dealers were waiting to buy receipts from shoppers. They target shoppers with large quantities of purchased goods such as electrical goods and consignments of building material, which reportedly fetch higher amounts of VAT claims.
Some travellers, however, still prefer going through the tedious process of queuing rather than selling receipts to VAT dealers.
“I normally prefer to be patient and make my own claim rather than sharing the money with VAT dealers. Each time I go for shopping in Musina, I make my own VAT claims on departure from South Africa,” said Mrs Elizabeth Stewart of Harare, who is a regular cross-border trader.
Officials at the Musina VAT cash office confirmed that long queues of Zimbabweans wanting to cash their cheques have become a common phenomenon in this border town. Zimbabweans street kids have also been seen foraging through dust bins in Musina in an apparent hunt for cash slips for resale to VAT dealers.
Publisher: www.zoutnet.co.za/25/02/11