South Africa

South African VAT on digital services

November 9th, 2017

In June 2014, South Africa made income earned by non-resident providers of electronic services to consumers liable to Value Added Tax. Electronic services liable to South African VAT South Africa includes the following services in its definition of e-services: Online gaming and games of change Internet-based auctions Online journals, blogs, newspapers, social media, webcasts, apps …


South Africa

South Africa VAT changes

February 24th, 2017

The South African 2017/18 budget last week failed to introduce a VAT rise as had been anticipated.  However, it did introduce a number of changes, including: International travel insurance will be nil-rated for VAT Fuel supplies to be nil-rated for VAT The supply of cloud computing services to consumers by non-residents will now be subject …


South Africa

South Africa told to raise VAT

July 13th, 2016

The International Monetary Fund has recommended that South Africa increase its VAT rate from the current 14%. The country faces a challenging economic situation with a rapid decline in growth rates. The country is expected to struggle to meet its deficit reduction aims. The average VAT rate in Africa for the larger economies is 16%.


South Africa

South Africa VAT budget

March 6th, 2016

The latest South African budget refrained from raising the standard VAT rate from the current 14% to help deal with the fast growing state deficit. But it did include a number of VAT changes, including: A review of the VAT treatment of vouchers, gifts or discounts granted by loyalty schemes A review output VAT relief …


South Africa

BRICS in trouble

September 24th, 2015

As emerging markets endure ongoing economic uncertainties, and the threat of a US interest rate rise which would redirect investment, VAT reforms have fallen out of favour.  The ‘BRICS’ (Brazil, Russia, India, China and South Africa) countries are enduring their own versions of this. Brazil revives controversial indirect taxes Brazil’s retreat into recession this last quarter …


South Africa

South Africa pressure to raise VAT rate

July 14th, 2015

A recent tax commission report has recommended that South Africa raises its VAT rate from 14% to 18%. South Africa’s VAT rate is one of the lowest in Africa where the average is just over 17%. The European Union average VAT rate is over 21%. The recommendation came from the Davis Tax Commission, which points …


South Africa

South Africa 2015 Value Added Tax update

August 2nd, 2014

South Africa is planning a number of changes to its South African Value Added Tax (VAT) regime from 1 April 2015. This is in addition to the recent B2C digital services VAT registration changes. The new changes include: Withdrawal of the option for paper import VAT reclaims. Companies must now use the electronic forms for …


South Africa

South Africa updates VAT compliance rules

May 16th, 2014

The South African Revenue Service (SARS) has issued its latest VAT guide (404) which provides detailer guidance to taxable persons on the rules for South African VAT compliance. The latest guide includes a range of changes, effective from 5 May 2014, including: Offering a voluntary VAT registration facility for taxable persons expected to cross the …