- The 2026 National Budget proposes repealing section 11(1)(f) of the VAT Act, which currently zero-rates VAT on certain gold bullion supplied to the SARB, SA Mint, and SA Banks.
- Repealing this section would subject domestic gold bullion supplies to these entities to the standard 15% VAT, increasing their acquisition costs.
- The repeal is proposed due to practical difficulties in tracing and isolating unprocessed, primary-source gold, making compliance and auditing complex.
- The proposal is surprising as the Constitutional Court is currently considering the interpretation of the relevant phrase in section 11(1)(f) in the Lueven Metals case, with judgment pending.
Source: ensafrica.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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