New VAT and Carbon Tax Rules: What You Need to Know
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SARS has published the following new tax regulations with effective dates from 1 January and 1 April 2025:
Regulations with regards to value-added tax for casino table games of chance issued in terms of section 74(2) of the Value-Added Tax Act, 1991 (Act No. 89 of 1991) -Notice 5994
Regulations prescribing electronic services for purposes of the definition of “electronic
services” in section 1(1) of the Value-Added Tax Act, 1991 (Act No. 89 of 1991) - Notice 5993Regulations with regards to value-added tax on domestic reverse charge relating to valuable metal issued in terms of section 74(2) of the Value-Added Tax Act, 1991 (Act No. 89 of 1991) - Notice 5995
Regulations under section 19(c) of the Carbon Tax Act 15 of 2019 - Notice 5992.
These updates affect vendors in digital services, casinos, precious metals, and carbon-intensive industries. Here's a quick summary of what you need to know.
🎰 VAT on Casino Table Games of Chance
Effective: 1 January 2025
Casinos can now account for VAT on table games of chance based on gross gaming revenue, as defined by provincial gambling laws. This simplifies VAT calculations but excludes additional deductions under section 16(3)(d).
🧾 Keep records ready for SARS and provincial audits.
🌍 Electronic Services – New VAT Rules for Digital Suppliers
Effective: 1 April 2025
The definition of “electronic services” has been expanded. Foreign digital providers must charge VAT if they supply services via the internet or electronic agents, unless specifically excluded (e.g. educational platforms or group services).
Cross-border digital businesses must make sure they are compliant.
🪙 Domestic Reverse Charge for Valuable Metal – Amended
Effective: 1 January 2025
What is a "domestic reverse charge"?
Normally, the seller charges VAT and pays it to SARS. But under a reverse charge, the buyer — not the seller — accounts for the VAT on the transaction. This helps prevent VAT fraud, especially in high-risk industries like gold trading.
This reverse charge mechanism now applies to a broader range of gold-containing items, like jewellery, rods, bars, and granules. Exemptions apply to items with <1% gold and certain mining-related supplies.
💡These provisions are aimed at curbing VAT fraud in the gold trade.
🌱 Carbon Offsets Regulations
Effective: 1 January 2024 (retroactive)
What Are Carbon Offsets?
Under the Carbon Tax Act, companies that produce greenhouse gas emissions must pay a carbon tax. However, they are allowed to reduce this tax by investing in approved carbon offset projects — like renewable energy, energy efficiency, or reforestation.
Think of offsets as a way to “cancel out” part of your emissions by supporting projects that reduce emissions somewhere else.
The newly updated regulations:
Clarify which types of carbon offset projects are eligible;
Define how and when companies can claim the offset;
Specify the documentation and approval process required;
Align local rules more closely with international carbon standards (e.g. CDM, VCS, Gold Standard).
This makes the carbon offset system more transparent and consistent — and easier to navigate for companies.
♻️ Green investments just became more valuable — review offset eligibility.
