South Africa: Adopted 2024 budget review of South Africa including proposed amendments to electronic services regulations and VAT Act

On 21 February 2024, the National Treasury of South Africa adopted the budget review which includes proposals for amendments to electronic services regulations and the Value Added Tax (VAT) Act. The budget proposes limiting VAT to non-resident vendors who supply to non-vendors or end consumers. Further, the budget proposes updating the electronic services regulations to require non-resident vendors to appoint representative vendors without needing such vendors to be based in South Africa. The requirement for a local bank account under the VAT Act is proposed to be waived, to enhance compliance.