South Africa’s 2025 draft TLAB and TALAB propose major VAT reforms to modernise the system and close compliance gaps. Key changes include extending intermediary rules to local suppliers, zero-rating silver exports and clinical trial services, exempting all basic education supplies (forcing some schools to deregister), removing low-value import thresholds, and tightening VAT registration with site inspections. The VAT Modernisation Project will support e-Reporting and digital compliance. Businesses, especially in education, e-commerce, and cross-border trade, must prepare for higher compliance requirements and system upgrades.
South Africa Proposes Major VAT Reforms to Modernize Tax System
Public
Other countries
Author: Ljubica Blagojević
Category:
General information
Views:
2042
Content accuracy validation date:
24.09.2025
Content accuracy validation time:
08:10h
Key Proposed VAT Changes
- VAT & Intermediaries: Extend rules so intermediaries can account for VAT on behalf of local suppliers, not just foreign electronic service providers.
- Silver Exports: Amend VAT Act to allow zero-rating of silver exports under similar documentary requirements as gold.
- Clinical Trials: Zero-rate testing services and related goods supplied to non-resident clients to maintain global competitiveness.
- Education: Make all basic education-related supplies VAT-exempt. Private schools may need to deregister for VAT and make change-of-use adjustments for past input claims. Past assessments before Jan 2026 will not be reopened.
- VAT Registration: SARS may conduct site inspections to verify business premises, even for home-based businesses (limited to trade areas).
- Foreign Airtime Vouchers: Only distribution services within South Africa subject to VAT; airtime consumption offshore remains out-of-scope.
- Low-Value Imports: Remove the R500/R100 thresholds to level the playing field between domestic and foreign suppliers.
- VAT Modernisation Project: Introduce definitions to support e-Reporting and digital compliance. Goal: streamline compliance, reduce errors/fraud, improve tax administration, and expand regulatory powers.
This package is one of the most comprehensive VAT updates in recent years, aiming to modernise administration and close gaps in the tax base. Key measures—such as removing low-value import exemptions—will impact e-commerce and logistics, potentially raising costs for consumers but protecting local suppliers. The education VAT exemption could significantly affect private schools’ cash flow and pricing models. Extending intermediary rules and zero-rating clinical trial services should improve compliance and competitiveness. Businesses must prepare for tighter registration checks, new reporting obligations, and potentially mandatory digital invoicing in the future. Early system upgrades and compliance planning will be critical to avoid disruption.
Other news from Other countries
Vietnam Mandates Biometric Verification for E-Invoice Registration and Updates
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
New tax regulations mandate biometric authentication for legal representatives during electronic invoice registration and updates, using facial recognition technology to enhance identity verification and reduce fraud in tax administration. Legal representatives registering or updating electronic invoice information will soon be required to complete biometric authentication under new tax regulation... Read more
DIAN Intensifies Controls on Electronic Invoicing in Colombia
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The Colombian Tax and Customs Authority (DIAN) has enhanced electronic invoicing validation, implementing stricter real-time audits to uncover discrepancies and tax non-compliance. Companies with manual processes are most at risk. Consequences include investigations and penalties. Experts advise automation and integration of systems to mitigate risks and ensure compliance. The Colombian Tax and Cu... Read more
China to Simplify Tourist VAT Refunds to Boost Inbound Tourism
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
China is expanding its instant tourist VAT refund system to make tax-free shopping easier for foreign visitors and support inbound tourism. From 1 July 2026, refund claims below CNY 10,000 will face only random customs checks, reducing queues at departure points. The reform also expands authorised refund stores, promotes digital processing, and gives tourists 28 days to leave China and validate cl... Read more
Vietnam Finance Ministry Extends E-Invoicing to Foreign Digital Platforms
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Vietnam's new Law on Tax Administration expands e-invoicing to overseas businesses on digital platforms starting July 2026, enabling registration for foreign suppliers from June 1, 2025. The 2019 e-invoicing framework has been replaced by a new Law on Tax Administration in Vietnam, which broadens the scope of e-invoicing to specifically cover overseas businesses and individuals using digital platf... Read more
Saudi Arabia: ZATCA Launches Wave 23 of E-Invoicing (Phase 2)
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
ZATCA's Wave 23 of Phase 2 e-invoicing integration targets VAT-registered businesses in Saudi Arabia with taxable turnover over SAR 750,000 for 2022-2024. Integration with Fatoora must be completed by 31 March 2026. Requirements include API connectivity, compliant invoice formats, QR codes, and real-time reporting. Early preparation aids compliance and operational efficiency. ZATCA has announced W... Read more
Saudi Arabia: Complete Guide to ZATCA Phase 2 E-Invoicing Waves 18–22 (2026)
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Saudi Arabia's ZATCA Phase 2 e-invoicing mandates VAT-registered businesses to integrate invoicing systems with the Fatoora platform, generating XML invoices and enabling real-time reporting. Phases 18–22 target progressively smaller businesses from 2023 to 2026, requiring compliance with new standards. Core requirements include secure XML invoices, cryptographic stamps, QR codes, and real-time re... Read more
UAE: TRN vs. VAT Number: What’s the Real Difference?
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
In the UAE, the Tax Registration Number (TRN) and VAT number are a single 15-digit code issued by the FTA, necessary for VAT compliance. Registration is mandatory for taxable turnover exceeding AED 375,000, with voluntary registration allowed at AED 187,500. Operating without a TRN or using an incorrect one may incur penalties up to AED 5,000. The TRN is essential for charging and reclaiming 5% VA... Read more