- A VAT domestic reverse charge on valuable metal was introduced on 1 July 2022.
- Amendments to the regulations were made effective on 1 January 2024, focusing on definitions and documentation requirements.
- A further amendment to the definition of valuable metal was effective on 1 April 2025.
- The FAQs are based on the VAT Act and Tax Administration Act, including amendments from various 2024 Acts.
- The FAQs aim to clarify and ensure consistency on practical and technical aspects of the DRC Regulations.
- The FAQs are not intended as legal references and will be updated periodically.
- The DRC Regulations were introduced to prevent the misuse of the VAT system for legitimizing illegally sourced gold and to stop fictitious business registrations for VAT refunds.
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.
