SADC cross-border trade and invoicing
How SADC and SACU relate to South African export invoicing, and how exported goods are zero-rated for VAT.
The Southern African Development Community (SADC) is a regional bloc of 16 member states. The Southern African Customs Union (SACU) is a smaller customs union of South Africa, Botswana, Eswatini, Lesotho and Namibia. Goods exported from South Africa to a country outside the Republic may be charged VAT at 0%, subject to the export rules, but if delivery takes place in South Africa the standard rate applies unless the export regulations allow the zero rate. Customs declarations, tariff classification and origin certificates are handled with SARS Customs, a clearing agent or your freight forwarder, and the destination country has its own rules. 4invoices creates the invoice, with the tax rate on each line and in any currency with an exchange rate, and a PDF. It does not produce customs declarations or certificates of origin and does not connect to SARS Customs.
- SADC has 16 member states; SACU is the customs union of five.
- Exports of goods may be zero-rated for VAT, subject to the export rules and proof of export.
- Customs documents come from SARS Customs or your clearing agent, not from 4invoices.
- Invoices can be created in the customer's currency with an exchange rate.
How it works
Confirm the goods are exported. Zero-rating depends on the goods being exported from South Africa. Check the SARS export rules and keep the transport and customs documents that prove it.
Invoice at the right rate. Show 0% VAT on the export lines. For deliveries within South Africa, charge 15% unless the export regulations allow the zero rate.
Invoice in the agreed currency. Choose the customer's currency and enter the exchange rate you use.
Deal with customs separately. Your clearing agent or freight forwarder handles the customs declaration, tariff classification and any origin certificate the destination requires.
Keep proof of export. Keep your invoice and export documents for at least five years for your VAT records.
Legal references
- Value-Added Tax Act 89 of 1991, section 11 - zero-rating of exported goods.
- SARS VAT 404 Guide for Vendors - exports and the zero rate.
- Southern African Customs Union Agreement (2002) and SADC Trade Protocol - regional trade framework.
Frequently asked questions
Do I charge South African VAT on exports?
Goods exported to a client in a country outside the Republic may be charged at 0%, subject to the export rules and proof of export. If delivery takes place in South Africa you generally charge the standard rate. Ask SARS or your accountant about your case.
What is the difference between SACU and SADC?
SACU is a customs union of South Africa, Botswana, Eswatini, Lesotho and Namibia. SADC is a wider regional community of 16 member states with its own trade protocol.
Do I need a certificate of origin?
Only if the destination requires one, for example to claim preferential duty. Your clearing agent or SARS Customs can tell you which document applies.
Does 4invoices create customs documents?
No. 4invoices does not create customs declarations or certificates of origin, does not store tariff codes and does not connect to SARS Customs. It creates the invoice with the tax rate on each line, in any currency with an exchange rate, as a PDF.