Tax Court Denies VAT Refund Claimed by Clearing Agent on Behalf of Clients
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Case: Appellant Southern Africa (Pty) Ltd v SARS [2025] ZATC JHB
The Background
Appellant Southern Africa (Pty) Ltd, a licensed clearing and forwarding agent, tried to claim a R26.9 million VAT refund after facilitating the import of gold coins into South Africa for its client, BIV Gold (Pty) Ltd. When SARS refused the refund, arguing that only BIV could claim the VAT, Appellant challenged the decision in court.
The gold coins were imported in October 2018 and VAT was initially not declared, based on a mistaken belief by both parties that no VAT was payable. SARS corrected this and Appellant paid the VAT. A few days later, the deal between BIV and the foreign supplier was cancelled and the coins were exported back. Appellant then tried to recover the VAT, not as BIV, but in its own name.
What Was Disputed
Appellant made three main arguments:
It was entitled to claim input VAT as a “representative taxpayer” or “responsible third party” under the Tax Administration Act.
There was no valid importation, as the goods were never released for home consumption and were exported back.
It should be allowed to adjust its output tax, arguing the transaction was cancelled, similar to how VAT on returned goods is adjusted.
The court dismissed each of these. It ruled that clearing agents acting on behalf of clients don’t become importers, nor can they claim refunds. The law clearly states that importation is deemed to occur when goods land and are declared for home consumption. Appellant had used the correct purpose codes and completed customs forms indicating just that. Also, the refund attempt was made using BIV’s VAT number, which made it clear BIV was the importer. Lastly, section 21 of the VAT Act didn’t apply because there was no domestic supply—just a re-export of imported goods.
Takeaway for Accountants
This ruling is a reminder that only the registered vendor on record as the importer may claim input VAT. Clearing agents acting on behalf of clients can’t step into their shoes later. Accountants working with importers must ensure proper documentation and registration to avoid costly disputes.
