South Africa 2015 Value Added Tax update

Sat 2nd Aug 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 the recovery of import VAT.
  • Revised proof of import documentation for companies using agents to import goods on their behalf.
  • A new requirement to compel tax agents to send VAT invoices on behalf of their foreign clients out within 21 days of the taxable supply.
  • Good supplied to the agricultural industry are to be reclassified as zero rated for VAT.
  • As an anti-fraud measure, the withdrawal for the right to deduct VAT on gold purchases from non-VAT registered supplies.
  • Confirmation that newly registered VAT payers may not subsequently reclaim input VAT on supplies made prior to registration.