Exporting goods from South Africa just got a little less complicated. On 25 August 2026, the Minister of Finance, Enoch Godongwana, officially updated the rules around Value-Added Tax (VAT) for exporters. This common-sense change fixes a frustrating loophole that was creating unnecessary red tape for local businesses.
The Old Rule’s “Catch-22”
The rule in question is Regulation 8(2)(e) of the Export Regulations of 2014, which states that a vendor may only elect to impose VAT at the zero rate where the vendor supplies movable goods to a qualifying purchaser or registered vendor and the movable goods are
- situated at the designated harbour or airport;
- delivered to either the port authority, master of the ship, a container operator, the pilot of an aircraft or are brought within the control area of the airport authority; and
- destined to be exported from the Republic.
What this meant was that normally, when a South African business sells goods that are destined to leave the country, they can charge a zero percent VAT rate on that sale. To get this tax break, this rule required that the goods had to be delivered to a designated harbour or airport, and handed directly over to an official entity, like the main port authority (Transnet) or a ship’s captain. While that sounds simple on paper, it created a massive headache in the real world for private operators, such as the Richards Bay Coal Terminal (RBCT).
RBCT is a private company that operates right inside the Richards Bay harbour, leasing the port infrastructure from the national port authority. Under the old, very strict rule stated above, when a mining supplier delivered coal to RBCT, they were technically delivering it to a private company, not the official port authority. Because of this technicality, SARS could say that those suppliers could not use the zero percent VAT rate.
A Rule That Ignored Reality
The biggest frustration with this strict rule was that it ignored how the export logistics actually work. Once coal is dropped onto a stockpile at the RBCT, its only possible destination is a ship headed overseas. The facility physically does not have the equipment to load that coal back onto trucks or trains for local South African sales. Even though it was 100% guaranteed that the goods were being exported, the outdated wording of the tax law penalized the suppliers.
The Common-Sense Fix
Thankfully, the government has recognised the problem. The newly published Amendment to the VAT Export Regulations officially rewrites the rulebook. The updated regulation now explicitly adds that delivering goods to any licensed terminal operator at the port is just as good as delivering them to the port authority itself. Because all dry bulk and container terminals are required by law to have official operating licenses anyway, the government can still trust that the goods are secure and headed for export. What this means for businesses:
Easier Tax Compliance: Suppliers using licensed private terminals for exports can now confidently charge 0% VAT without worrying about getting tripped up by unfair technicalities.
Backdated Tax Relief: To ensure businesses don’t lose out, the government has made this rule change retroactive. It officially applies to any transactions made on or after 1 April 2026. This update is a major win for the logistics and export sectors. By aligning the tax laws with the way ports actually operate, the government has removed a massive administrative burden, helping South African goods flow more smoothly into the global market.