By Mayet & Associates Inc. | Commercial & Tax Law

The middle of 2026 has delivered a significant Constitutional Court judgment on VAT zero-rating, a wave of draft legislation, and important compliance deadlines that businesses and individuals alike should diarise. In this article, we unpack the developments most likely to affect our clients, from gold dealers and multinational groups to ordinary taxpayers preparing for Filing Season.

Constitutional Court closes the door on zero-rating recycled gold

In Lueven Metals (Pty) Ltd v Commissioner for the South African Revenue Service [2026] ZACC 24, the Constitutional Court was asked to interpret section 11(1)(f) of the Value-Added Tax Act, 1991, the provision that permits certain supplies of gold to the South African Reserve Bank, the South African Mint Company and registered banks to be zero-rated.

The dispute turned on the qualifying words in the section, which require that the gold has not undergone any manufacturing process other than refining, or manufacture into the prescribed forms. The taxpayer contended that the provision was concerned only with the form of the gold at the point of supply and the identity of the purchaser: provided the gold was in an unwrought, prescribed form and sold to a prescribed institution, its earlier life was irrelevant.

The Constitutional Court disagreed. It held that the section looks backwards as well as forwards: gold that has previously been manufactured into jewellery or other products, that is, recycled or second-hand gold, carries a disqualifying manufacturing history, even if it is subsequently refined back into a prescribed form. Such gold cannot be zero-rated under section 11(1)(f). The appeal was dismissed with costs, including the costs of two counsel.

Why it matters: Refiners, secondary gold dealers and banks transacting in recovered gold must now treat these supplies as standard-rated. Businesses in the precious metals value chain should review their supply contracts, pricing and VAT treatment without delay, and consider whether historical positions create exposure.

Draft VAT regulations: domestic reverse charge for valuable metal

Staying with the precious metals theme, SARS has published draft regulations and an explanatory memorandum under section 74(2) of the VAT Act dealing with the domestic reverse charge mechanism for valuable metal. The reverse charge shifts the obligation to account for output VAT from the supplier to the recipient, a mechanism aimed squarely at combating VAT fraud in the gold sector. The comment window closed at the end of June 2026, and final regulations are expected to follow. Participants in the industry should monitor this space closely, as the interaction between the reverse charge rules and the Lueven Metals judgment will shape VAT compliance across the sector.

Income tax: section 18A certificates and living annuities

Two developments under the Income Tax Act, 1962 deserve attention:

Section 18A draft rules. SARS has released draft amendments to the rules prescribing the information that must appear in a section 18A(2B) and (2C) certificate, the receipts that public benefit organisations issue to donors claiming deductions. Comments are due by 17 July 2026. PBOs should review their receipting systems now, as non-compliant certificates place donors’ deductions at risk.

Living annuity threshold. SARS has published a fresh notice under paragraph (c) of the definition of “living annuity” in section 1(1) of the ITA, withdrawing all earlier notices and setting the relevant amount at R150 000. Retirement fund administrators and financial advisers should update their processes accordingly.

Filing Season 2026: dates and what’s new

SARS has confirmed the key dates for the 2026 Filing Season:

• Auto assessments: 1 – 12 July 2026
• Non-provisional individual taxpayers: 13 July – 23 October 2026
• Provisional taxpayers and trusts: 13 July 2026 – 22 January 2027

Taxpayers who receive an auto assessment should note a related concession under the Tax Administration Act, 2011: the deadline for auto-assessed taxpayers to request a reduced or additional assessment has been extended to 23 October 2026 (unless the auto assessment itself is issued after 27 August 2026).

This year’s Filing Season also brings more prefilled information, simplified questions, better guidance on tax residency, WhatsApp functionality for certain assessment and account services, and a refreshed ITR12 interface. Taxpayers are urged to verify their personal, contact and banking details on eFiling before the season opens in earnest, outdated details remain one of the most common causes of refund delays and verification disputes.

Global Minimum Tax: returns now live

Multinational enterprise groups within the scope of South Africa’s Global Minimum Tax regime should note that SARS has published guidance on the GMT return process. In-scope MNEs must submit the GMT01 return together with the GMT02 declaration and supporting tax calculations. Returns are generally due 15 months after the end of the relevant fiscal year, extended to 18 months for the first qualifying fiscal year commencing on or after 1 January 2024. SARS has released a dedicated eFiling guide and updated its payment rules to accommodate the new regime.

Customs and excise: safeguards, steel and cross-border travellers

On the customs front, several measures stand out:

• Steel safeguard duties. Safeguard duties on flat-rolled iron, non-alloy and alloy steel products under Chapter 72 have been implemented on a stepped-down basis, 52,34% initially, reducing to 37,34% and then 22,34% over successive twelve-month periods to June 2029. Importers of flat-rolled steel should reassess landed costs and sourcing strategies.
• Anti-dumping measures. Provisional anti-dumping duties have been imposed on certain large-diameter iron and steel tubes and pipes originating in or imported from Mozambique, and the anti-dumping duty on polyethylene terephthalate (PET) from China has been increased sharply.
• China Zero-Tariff Preference Scheme. Following the scheme’s commencement on 1 May 2026, SARS now issues Rules of Origin certificates for qualifying South African exports to China, with retrospective certification available for goods shipped from 1 May 2026. Exporters should confirm that their goods qualify, tariff-rate quotas and specific conditions still apply to certain products.
• Traveller declarations. From 1 June 2026, all drivers entering South Africa with vehicles for temporary importation must declare those vehicles at the port of entry, including vehicles registered in SACU countries such as Lesotho. This is a practical change with real consequences for cross-border traffic between Lesotho and South Africa, and travellers should familiarise themselves with SARS’ online traveller declaration options.

This article is provided for general information purposes only and does not constitute legal or tax advice. Specific advice should be obtained before acting on any of the matters discussed.