VALUE ADDED TAX: INPUT SOUGHT ON DRAFT REGULATORY AMENDMENTS AFFECTING VALUABLE METALS

VALUE ADDED TAX: INPUT SOUGHT ON DRAFT REGULATORY AMENDMENTS AFFECTING VALUABLE METALS

• 03 June 2026
• Taxation
• SA Legal Academy

National Treasury has called for input by 30 June 2026 on draft amendments to regulations on the valuable metal-related domestic reverse charge applicable under the 1991 Value Added Tax (VAT) Act. Once finalised, the amendments are scheduled to come into force on 1 August 2026 and in are expected to ‘enhance the efficacy of … VAT legislation on valuable metal transactions’.

This is according to an accompanying media statement, which refers to amendments intended to clarify:

• the definition of ‘residue’, and
• the 1% gold content/de minimis rule.

An explanatory memorandum notes that, in place since 1 January 2024, the de minimis rule was introduced ‘to exclude supplies in which an insubstantial amount of gold could be included … but where the supply of gold was incidental’.

However, it has been found to:

• create ‘the opportunity to obtain undue VAT refunds from the South African Revenue Services’, and
• exclude supply holders to whom the rule should have applied.

The proposed amendments seek to rectify this.

• draft amendments
• explanatory memorandum
• media statement

Published by SA Legal Academy Policy Watch

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