South Africa updates VAT compliance rules

Fri 16th May 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 compulsory VAT registration threshold with 12 months
  • Confirmation of the South African VAT rules for foreign providers of B2C services to consumers; this new rule should come into effect from 1 June 2014
  • Clearly VAT registration guides and a a revised VAT deregistration process
  • VAT changes for the provision of in-flight entertainment
  • VAT changes for the provision of goods or services on a contingency basis