31 March 2025
The South African Revenue Service (SARS) has confirmed that foreign traders who supply electronic services only to business customers in South Africa, will not have to charge and account for VAT on their sales from 1 April 2025.
Instead, the reverse charge will apply, meaning that the South African business customer receiving the electronic service will account for and report the VAT in their own VAT reporting.
SARS also confirmed that this will not apply where the non-resident company is also selling to consumers as well as businesses in the country. In those cases, the non-resident supplier will still have to VAT register in order to charge VAT on all their supplies including those to business customers.
Are you trading globally? Whether you require basic VAT advice or specific VAT compliance support, Fiscal Solutions can help. Our team of multi-lingual experts are knowledgeable in all the different VAT rules in Europe and around the world.
We help you simplify today’s complexities and address tomorrow’s challenges. The values we represent, and our consistent advice, mean you can trust Fiscal Solutions to do the right thing – for you and your organisation.
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