- South Africa’s Constitutional Court unanimously upheld SARS’s interpretation of VAT rules for gold under section 11(1)(f) of the VAT Act.
- Zero-rating applies only to gold supplied to specified buyers in prescribed forms, and only if it has not previously been manufactured into other forms.
- Second-hand or recycled gold that was once made into items like jewellery does not qualify for zero-rating, even after refining.
- The ruling settles the dispute in SARS’s favor, dismisses Lueven Metals’ appeal with costs, and provides clarity for the gold, refining, banking, and VAT sectors.
Source: sars.gov.za
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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