South Africa has revised its VAT Act, changing the definition of “electronic services” and introducing new rules for foreign suppliers. Effective April 1, 2025, supplies to South African VAT-registered vendors are excluded from the “electronic services” definition, simplifying processes for foreign businesses dealing solely with them. Nonresident suppliers can now utilize intermediaries as principals, regardless of the intermediary’s VAT status. Stricter regulations are imposed on intragroup supplies, requiring services to be specifically created for local consumption. These changes aim to lessen administrative burdens, align with OECD guidelines, and streamline VAT procedures for nonresident suppliers. Foreign suppliers must still account for VAT on supplies to non-VAT-registered customers and ensure they can prove their customers are VAT-registered.
Source: globaltaxnews.ey.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.
