- South Africa proposes major VAT reforms in 2025 draft legislation to modernize the tax system and close compliance gaps affecting various business sectors
- Key changes include extending intermediary VAT rules to local suppliers, zero rating silver exports and clinical trial services, and exempting all basic education supplies which may force private schools to deregister
- New measures remove low value import thresholds to level competition between domestic and foreign suppliers, particularly impacting e commerce and logistics sectors
- SARS will gain enhanced powers including site inspections for VAT registration verification and tighter compliance requirements through the VAT Modernisation Project supporting digital reporting
- Businesses across education, e commerce, and cross border trade sectors must prepare for higher compliance requirements, system upgrades, and potential changes to cash flow and pricing models
Source: fiscal-requirements.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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