New legislation in respect of VAT has been promulgated resulting in services rendered on offshore equities to a Resident which were previously Zero Rated will now be subject to VAT at the current prevailing rate.
In terms of the 2017 Taxation Laws Amendment Bill, which was Tabled in Parliament on the 25th October 2017, the Value-Added Tax Act No.89 of 1991 (the “Act”) was amended to specifically exclude debt securities, equity securities or participatory securities from the zero-rating provisions of Section 11(2)(g)(i) of the Act. As of the 1st of April 2018, services rendered to a resident of the Republic of South Africa on debt securities, equity securities or participatory securities situated in any export country will be subject to VAT.
Please take note that VAT will therefore be levied on ALL applicable fees and charges effective 1 April 2018.
If you are already registered for Webtrader, please reference the most current rates available on the Trading Platform.