- Amendments Effective April 1, 2025: South Africa’s VAT Act will redefine “electronic services,” excluding supplies to VAT-registered vendors and allowing nonresidents to use intermediaries regardless of VAT status.
- Simplified Compliance for Foreign Suppliers: The changes aim to reduce administrative burdens for foreign electronic service providers and align with OECD recommendations, while still requiring VAT on mixed supplies to both VAT-registered and non-registered customers.
- New Rules for Intergroup Supplies: The amendments introduce stricter criteria for intergroup supplies, necessitating that services must be specifically created for the local group entity to qualify for exemptions.
Source EY
