South Africa introduces VAT registration exception for foreign providers of digital services

28 April 2023

The South African Revenue Service (SARS) has confirmed that foreign traders who supply electronic services to customers in South Africa can avoid registering for VAT if they exceed the ZAR 1 million VAT registration threshold due to abnormal circumstances.

The amendment to the VAT legislation to include this exception took place recently, however, it states that it is effective from January 2023, and aims to ease the administrative burden for foreign suppliers of electronic services trading in South Africa.

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