South Africa Tax (VAT) Changes
Actions to take if you are based in South Africa
What’s changing
Beginning Jan 1, 2026, Commerce7 will stop charging VAT on subscription invoices for South African customers who provide a valid South African VAT number.
This change reflects updated guidance on our VAT obligations where our South African customers are VAT‑registered.
Here's what you need to do
Is your business is VAT‑registered?Be sure to update your South African VAT number in Commerce7:
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Is your business is not VAT‑registered?Contact support@commerce7.com, confirming that you do not have a VAT number. Note that a valid SA VAT number will be required to continue using Commerce7 in South Africa. |
FAQ
- Who needs to register for VAT in South Africa?
A South African company is compelled to register when VAT‑able supplies reach ZAR 1 million in any rolling 12‑month period. Many wineries exceed this threshold. - Why are you asking for my VAT number?
To apply the new VAT treatment, we must record each SA customer’s VAT number and include it on invoices. Without a VAT number on file, the new treatment cannot apply. - What happens if I’m not VAT‑registered?
Per policy, a valid SA VAT number will be required to continue using Commerce7 in South Africa. If you believe you’re below the registration threshold, contact your tax adviser and let us know your status. - Will my price change?
No. Your price stays the same. In South Africa, VAT was already included in your subscription price—we didn’t add it on top. This means you’ve always paid one consistent amount, and that won’t change. - How do I update my VAT number?
In Commerce7: Settings → General → click the pencil → add your SA VAT number in 'Business number' → Save.
Questions about this change?
Contact support@commerce7.com, and we’ll be happy to help!
Note: If you have questions about your VAT registration and obligations, please consult your tax adviser.