After months of legal uncertainty over how value-added tax applies to gold, South Africa’s Constitutional Court has confirmed that supplies of qualifying gold remain zero-rated under the VAT Act.
The South African Revenue Service said the ruling aligns with its existing treatment, with the commissioner welcoming the judgment for restoring administrative certainty and reinforcing consistent compliance across the gold value chain. The decision settles competing interpretations that had raised risks for producers, refiners and traders.
With the status quo affirmed, SARS will continue applying the current rules and provide guidance where needed to ensure documentation and reporting match the court’s interpretation. Read more in the full announcement.