New VAT Rules for Digital Services in South Africa: What Businesses Need to Know

On 14 March 2025, South Africa published a significant amendment to its VAT regulations on electronic services, set to take effect on 1 April 2025. This revision impacts foreign non-resident suppliers and local businesses relying on cross-border digital services. Notably, the amendment alters the definition of “electronic services” to exclude certain business-to-business (B2B) transactions from VAT obligations.

Darren Britz
Partner and Head of Legal

Micaela Paschini
Team Lead: Tax Legal