Fiscal subject related
General information
South Africa’s National Treasury is implementing the legislative changes regarding the VAT treatment of Electronic Services Providers, as outlined in the Budget Speech delivered on February 21, 2024, which accompanies the presentation of the 2024 Budget.
A consultation was held on August 31, 2024, regarding the implementation of a reverse charge mechanism for B2B digital services provided by non-residents. This change will take effect on April 1, 2025.
As a result, VAT reporting responsibilities will shift to South African businesses, eliminating the requirement for non-resident suppliers to charge VAT or maintain registration in South Africa.
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