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:
830
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
Preparing for VAT in Qatar: Essential E‑Invoicing Steps for Businesses
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Qatar is advancing towards mandatory e-invoicing aligned with VAT. Key requirements include registration with tax authority, ERP integration, and timely structured invoicing. Benefits include faster reconciliation, improved compliance, and reduced fraud. Governance risks must be addressed early. An action plan involves gap analysis, pilot testing, and team training. All businesses must prepare, re... Read more
UAE to Launch E‑Invoicing Pilot in July 2026
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
UAE will implement mandatory Peppol-based e-invoicing starting 2027, using a decentralized model. Key timelines include technical specs in June 2025, pilot phase in July 2026, and B2G transactions by October 2027, with exclusions for specific services. UAE is launching mandatory Peppol-based e-invoicing and e-reporting in 2027 using a decentralised CTC and Exchange Model (DCTCE) with Peppol PINT 5... Read more
New document was uploaded: Q&A from the webinar: Brazil enters new Era
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
On November 27th, 2025, Fiscal Solutions organized a free webinar on the topic of "Brazil enters a new Era". The webinar was held by Fiscal Solutions Legal Consultant Ivana Picajkić. Let’s find out more about answers to questions asked during the webinar We answered the questions such as,: Are there any exceptions from the fiscalization obligation? Are the requirements that a company has to... Read more
New webinar was uploaded: Recorded webinar: Brazil Enters New Era – SW Fiscalization Takes Over Brazil
Public
Other countries
Author: Ivana Picajkić
Other countries
Author: Ivana Picajkić
On November 27 , 2025, Fiscal Solutions organized a free webinar on the topic „Brazil enters new era – SW fiscalization takes over Brazil“ The webinar was held by Ivana Picajkić, Legal Consultant at Fiscal Solutions The following topics were discussed during this webinar:- From old to new: Brazil’s fiscalization journey- Hardware fiscalization: Where it still applies- NFC-e: The new era of... Read more
Thailand's e-Tax Invoice System: A Digital Transition for Business Documents
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
An e–Tax Invoice is a digital tax invoice that replaces paper documents, regulated by Ministerial Regulation No. 384, the Electronic Transactions Act, and ICT Standard Recommendation No. 3-2560. Thailand offers two types: e–Tax Invoice & e–Receipt for all businesses, requiring a Digital Signature and Electronic Certificate, and e–Tax Invoice by Email for small businesses (≤ THB 30 million), verifi... Read more
Philippines Senate Proposes Abolishing VAT and 3% Percentage Tax
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The Philippine Senate is reviewing Bill No. 1450, which proposes to abolish the current VAT system and remove major VAT rules from the tax code, including those on taxable persons, invoicing, digital transactions and input credits. The bill also aims to scrap the 3% percentage tax for small VAT-exempt businesses under PHP 3 million in annual sales. If enacted, the reform would take effect 15 days... Read more
Brazil's Major Tax Modernization: Five Complex Taxes Replaced by Unified Dual VAT
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Brazil’s 2026–2033 tax reform replaces five complex consumption taxes with a unified dual VAT system (CBS and IBS) and introduces a Selective Tax on harmful goods. The OECD praises it as a major modernisation. The reform adopts the destination principle, zero-rates exports, and harmonises rates nationally, with reduced rates for key sectors and zero-rating for essential foods. It creates a non-cum... Read more