Following the most recent presidential address, it is clear that South Africa’s borders are going to remain closed for non-essential travel, at least for the time being.
Introduction Many South African companies make a living by providing goods and rendering services in Africa. Where these companies are vendors, VAT is ordinarily levied at 0% on these foreign supplies; which assists to ensure that there is no VAT leakage.
On 4 May 2020, the Minister of Finance issued a telling directive in Government Gazette No. 43266, in terms of which “services required to comply with an obligation imposed by or to exercise a right in terms of a tax Act” are expressly included within the ambit of “essential financial services”.