Africa Tax In Brief

Below, please find issue 174 of ENS’ tax in brief, a snapshot of the latest tax developments in South Africa.

case law

• Tax Court | Taxpayer A v Commissioner for the South African Revenue Service (VAT 22498) [2026] ZATC 7 (27 July 2026)
  • This judgment concerned an appeal by the taxpayer against a value-added tax (“VAT”) apportionment ruling issued by the Commissioner for the South African Revenue Service (“SARS”) on 23 September 2021, in which SARS declined to approve a transaction count method (“TC method”) of apportionment for the taxpayer’s entire enterprise and instead approved a dual method (a varied standard turnover-based method for general mixed expenses, together with the TC method for the taxpayer’s IT infrastructure) under section 17(1) of the Value-Added Tax Act, 1991 (“VAT Act”).
  • The main issue for determination was whether the TC method advocated by the taxpayer, rather than SARS’ approved dual method, was the fair and reasonable method of apportioning input tax incurred in making both taxable and exempt supplies, and which party bore the onus of proof under section 102(1)(f) of the Tax Administration Act, 2011.
  • The appeal was dismissed with no order as to costs.
  • Find a copy of the judgment here.

legislation and draft legislation

• Draft Taxation Laws Amendment Bill 2026 (“Draft TLAB”)
  • The Draft TLAB 2026 and the Draft Explanatory Memorandum to the Draft TLAB have been published for public comment.
  • The due date for comments is 28 August 2026.
  • Find a copy of the Draft TLAB here.
  • Find a copy of the Draft Explanatory Memorandum on the Draft TLAB here.
• Draft Tax Administration Laws Amendment Bill 2026 (“Draft TALAB”)
  • The Draft TALAB and the Draft Explanatory Memorandum to the Draft TALAB have been published for public comment.
  • The due date for comments is 28 August 2026.
  • Find a copy of the Draft TALAB here.
  • Find a copy of the Draft Explanatory Memorandum on the Draft TALAB here.
• Income Tax Act, 1962 (“Income Tax Act”) | Income tax notices
  • The following income tax notices were promulgated in Government Gazette 55152 of 7 August 2026:
    • Notice 7787, published in terms of section 76D, prescribing the fees payable by an applicant in an application for a double taxation agreement (“DTA”) advance pricing agreement
      • Find a copy of the notice here.
    • Notice 7788, published in terms of section 76C, prescribing the persons eligible to apply to the Commissioner for a DTA advance pricing agreement
      • Find a copy of the notice here.
    • Notice 7789, published in terms of section 76I(b), prescribing the additional requirements that will lead to the rejection of an application for a DTA advance pricing agreement
      • Find a copy of the notice here.
    • Notice 7790, published in terms of section 76J(1), prescribing the requirements for processing an application for a DTA advance pricing agreement
      • Find a copy of the notice here.
    • Notice 7791, published in terms of section 76J(3), prescribing the information to be contained in a preliminary DTA advance pricing agreement under that section
      • Find a copy of the notice here.
    • Notice 7792, published in terms of section 76P, prescribing the procedures and guidelines for the implementation and operation of the DTA advance pricing agreement system
      • Find a copy of the notice here.
  • The notices are to be read with the Advance Pricing Agreements – External Guide, available here.

SARS publications

• Guides
  • Guide to the Employment Tax Incentive (Issue 5)
    • SARS has published Issue 5 of the Guide to the Employment Tax Incentive.
    • Find a copy of the guide here.
  • Tax Guide for Share Owners (Issue 9)
    • This guide provides general guidance on the taxation of share owners and examines inter alia the tax consequences of holding shares as trading stock compared to holding them as capital.
    • Find a copy of the guide here.
• Interpretation Note 145 (“IN 145”) | Employment Tax Incentive Act, 2013 (“ETI Act”)
  • SARS has published IN 145 (first issue) which considers the meaning of “employee” for purposes of the ETI Act.
  • Find a copy of IN 145 here.

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• Tax Exempt Institutions Connect (Issue 12)
  • This issue covers key information that entities applying for Income Tax Exemption should be aware of. This includes selecting the correct “Nature of Entity” when registering for Income Tax, as well as selecting the correct Exempt Institution category when applying for Income Tax exemption.
  • Find a copy of the new issue here.
• SARS urges schools to apply for VAT deregistration
  • SARS calls on schools registered under the South African Schools Act that are registered as VAT vendors to apply for cancellation of their VAT registration, following the legislative change in the VAT treatment of schools with effect from 1 January 2026 (from which date all supplies made by schools are exempt from VAT, except to the extent that a school conducts qualifying welfare activities).
  • Find the full media release

customs and excise

• Advance Import Payments | SARS External Guide and Policy
  • The Advance Import Payment documentation has been revised to align with amended Rule 120.13.02 that provides for an increase in the monetary threshold applicable to Advance Payment Notifications from R50 000.00 to R100 000.00.
  • Find a copy of the revised Advance Import Payment External Guide here.
  • Find a copy of the revised Advance Import Payment External Policy here.
  • Customs and Excise Act, 1964 (“Customs and Excise Act”) | Draft amendments Draft amendments to Schedules
    • The following draft amendments to the Schedules to the Customs and Excise Act have been published for public comment:
      • Draft amendments to Part 1 of Schedule No. 1;
      • Draft amendments to Part 1 of Schedule No. 3;
      • Draft amendments to Part 2 of Schedule No. 4;
      • Draft amendments to Part 3 of Schedule No. 5;
      • The due date for comments is 21 August 2026.
  • An explanatory memorandum to the draft amendments has been published.
    • Find a copy of the explanatory memorandum

• • The following draft amendments to the Schedules to the Customs and Excise Act have been published for public comment:
    • Draft amendment to Part 1 of Schedule No. 1;
    • Draft amendment to Part 2A of Schedule No. 1;
    • Draft amendment to Part 5A of Schedule No. 1;
    • Draft amendment to Part 5B of Schedule No. 1;
    • Draft amendment to Part 1D of Schedule No. 6;
    • Draft amendment to Part 1F of Schedule No. 6;
    • The due date for comments is 29 August 2026.
  • An explanatory memorandum to the draft amendments has been published.
    • Find a copy of the explanatory memorandum here.
• Draft amendments to Rules
  • Rules under sections 64E and 120 of the Customs and Excise Act
    • The draft amendments to the rules which relate to the electronic accreditation system and the extension for transferring accreditation information from 6 months to 18 months have been published for public comment.
    • The due date for comment is 21 August 2026.
    • Find a copy here.
  • Rules under sections 77ZH and120 of the Customs and Excise Act
    • The draft amendments to the rules which sets out how voluntary disclosure relief will work under the Customs and Excise Act have been published for public comment.
    • The due date for comment is 25 August 2026.
    • Find a copy here.
• Tariff amendments notice | Notice R.7794
  • The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the following amendments, with effect from 6 August 2026:
    • Part 1 of Schedule No. 1, by the substitution of tariff subheadings 1001.91 and 1001.99 as well as 1101.00.10, 1101.00.20, 1101.00.30 and 1101.00.90, to reduce the rate of customs duty on wheat and wheaten flour from 15.37c/kg and 23.05c/kg, respectively to free of duty, in terms of the existing variable tariff formula
  • Find a copy here.
• R.7777 | Amendments to rules under sections 54F, 64B, 64D, 64E, 64G and 120 of the Customs and Excise Act
  • The rule amendment notice has been published in Government Gazette 55151 of 7 August 2026.
  • Find a copy of the notice

tax rulings

• VAT Ruling: VR 022 | Enterprise definition
  • The ruling confirms that, at the time of its voluntary registration, the Applicant satisfied the definition of “enterprise” for VAT purposes, despite not having commenced making taxable supplies.
  • Find a copy here.
• VAT Ruling: VR 023 | VAT treatment of Educational Services
  • The ruling confirms the VAT treatment of the supply of educational services by an accredited further education services supplier that is not registered under the Continuing Education and Training Act, 2016.
  • Find a copy here.

exchange control

• Exchange Control Circular No. 19/2026 | Invitation for public comment: Draft Crypto Asset Manual for cross border activities
  • The Financial Surveillance Department of the South African Reserve Bank has developed a regulatory framework for cross border crypto asset activities that provides for the authorisation and supervision of crypto asset service providers (“Authorised CASPs”) facilitating cross-border crypto asset transactions, which is set out in the draft Crypto Asset Manual for cross- border activities (the “Draft Manual”).
  • The Draft Manual, which sets out the application and adjudication process for authorisation to conduct the business of an Authorised CASP, has been published for public comment.
  • The due date for public comments is 30 September 2026.
  • Find a copy of the circular here and a copy of the Draft Manual here.