Draft VAT Amendments Issued for Valuable Metals Reverse Charge

Posted 03 June 2026 Written by Acts Online
Category Tax

Brought to you by SA Legal Academy: National Treasury has invited public comments on draft regulatory amendments concerning the valuable metal-related domestic reverse charge (DRC) mechanism under the Value-Added Tax Act, No. 89 of 1991.

In terms of the Value-Added Tax Act, No. 89 of 1991, the proposed regulations aim to clarify the application of the de minimis rule. This rule, which has been in place since 1 January 2024, was originally introduced to exclude transactions containing incidental or insubstantial amounts of gold from the complex DRC provisions.

According to the accompanying explanatory memorandum, the draft amendments are intended to enhance the overall efficacy of the VAT legislation on valuable metal transactions and prevent unintended compliance burdens on incidental supplies. Once finalised, the amended regulations are scheduled to come into force on 1 August 2026.

Stakeholders and affected parties are requested to submit written comments on the draft regulations to National Treasury by no later than 30 June 2026.

What this means for you, your business, or your clients

  • For yourself: Maintain technical knowledge of the evolving domestic reverse charge mechanism requirements to advise clients accurately on VAT compliance for transactions involving precious metals.
  • For your business: Review internal accounting systems and VAT reporting templates ahead of the proposed 1 August 2026 implementation date to accommodate the refined de minimis rule definitions.
  • For your clients: Ensure clients trading in goods containing gold or other valuable metals assess whether their transactions fall under the updated de minimis threshold to avoid incorrect VAT reverse charge applications.

Originally published at https://legalacademy.co.za/news/read/value-added-tax-input-sought-draft-regulatory-amendments-affecting-valuable-metals

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