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An analysis by ENSafrica, Taxand South Africa
The South African government has recently announced that proposed changes to the VAT treatment of electronic services will be released for public comment.
Currently, non-resident suppliers of electronic services to South African residents must register for VAT if their services exceed ZAR 1 million in a year. The new amendments aim to simplify VAT rules, especially for business-to-business (B2B) transactions, by exempting services provided by non-residents to registered South African vendors. However, these changes won’t take effect until April 2025.
Jo-Paula Roman from our South African member firm ENSafrica has analysed this move in further detail here, highlighting the remaining concerns around unclear definitions and possible inefficiencies in cases where services are supplied to both registered vendors and non-vendors.
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