- South Africa plans to eliminate VAT exemption on low-value imports.
- Changes align with interim measures by SARS since September 2024.
- 2025 Draft Taxation Laws Amendment Bill proposes removing the de minimis threshold.
- Small consignments under ZAR 500 will no longer be VAT-free.
- Expected to increase import costs for businesses and consumers, especially in eCommerce.
- May impact educational supply chains due to VAT on printed materials.
- Current law exempts goods under ZAR 500 from VAT if no customs duty is payable.
- Many stakeholders have already been charged VAT on low-value imports since September 2024.
- Proposed changes aim to ensure VAT applies to all imported goods regardless of value.
- National Treasury seeks to level the playing field between local and offshore sellers.
Source: insightplus.bakermckenzie.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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