How to Calculate and Claim VAT Refunds on Airline Tickets in South Africa

How to Calculate and Claim VAT Refunds on Airline Tickets in South Africa

If you’re a frequent flyer who travels for business or leisure, you’re no stranger to the hefty price of airline tickets. Fortunately, in South Africa, you might be eligible for a VAT (Value Added Tax) refund on your airline tickets. In this article, we’ll help you understand how to calculate and claim such refunds.

Understanding VAT

Before diving into the specifics of claiming VAT refunds on airline tickets in South Africa, it’s crucial to understand what VAT means. VAT is a tax levied on certain goods and services that consumers pay. It’s added to the product or service’s price, and it’s the responsibility of the company providing the service/good to collect and submit VAT to the government.

South Africa’s VAT Rate 2021

South Africa has a VAT rate of 15% for the year 2021. This percentage is added to the products or services that are subject to VAT. In South Africa, exporting goods and services with VAT exemption applies to services exported and supplied directly to foreign residents.

Can You Claim a VAT Refund on Airline Tickets in South Africa?

As mentioned earlier, if you’re a frequent flyer or a business traveler, you might be eligible for a VAT refund on airline tickets. This refund is only applicable if the flight is departing from South Africa and has a final destination outside of South Africa. However, if your flight is returning to South Africa from an international destination, you are eligible to claim VAT refunds on the goods purchased abroad.

How to Claim a VAT Refund on Airline Tickets in South Africa?

The South African Revenue Service(SARS) is responsible for collecting and processing VAT returns. If you’re looking to claim a VAT refund, then these are the steps you need to follow.

Step 1: Get an original tax invoice.

Firstly, you must ensure that you have an original tax invoice issued by the airline or travel agent. This tax invoice should clearly state the South African VAT charged, including the airline company’s VAT number.

Step 2: Decide on how you want to make your claim.

Before claiming your VAT refund, you must decide on how to claim it. There are two options:-

Option 1: Make use of the electronic self-help kiosks available at the airport.

Option 2: Alternatively, the documents required can be submitted via post.

Step 3: Fill in the VAT refund form.

Next, you’ll need to fill in the VAT refund form. This form captures your details, flight details, and the details of the original tax invoice.

Step 4: Attach relevant documents.

Remember to attach all relevant documents, including the original tax invoice, copies of your passport, and boarding passes to your VAT refund form.

Step 5: Submit your VAT refund claim

When you have completed the forms and gathered all necessary documents, submit your VAT refund claim.

Conclusion

In summary, claiming a VAT refund on airline tickets in South Africa is entirely possible if you follow the correct procedures and have the correct documentation. Remember to keep track of all your documents, including the original tax invoice, as you might need to produce these at a later stage. We hope that these steps have helped you understand the process of claiming a VAT refund on airline tickets in South Africa. Happy travels!