15% Vat on Fees for South Africans from 1st Jan 2024

[DonCarlos2]

Hi everyone, I just need some clarity as I’m a bit confuse. Please see the below message I got from PayPal recently. Will the 15% Vat only be on the Fees or on the amount received. In accordance with the laws of South Africa, PayPal is obliged to charge and collect VAT at the applicable rate (currently 15%) on all its services that are rendered to merchants and customers in South Africa. In compliance with the VAT laws in South Africa, as of 1 January 2024, you will notice a VAT element in addition to the fees charged by PayPal. We will charge the VAT amount together with our fees for transactions received or processed in your PayPal account. The amount of VAT applied on fees will be indicated on the monthly VAT invoices issued by PayPal, available in your PayPal account. PayPal will not charge you any VAT on fees incurred prior to 1 January 2024. This means that you will not receive any invoices or corrective statements from PayPal, nor will we charge you any VAT, for this period.

[SiegeBarista]

Similar situation to @AfricanB 
Do I have to get VAT registered now or not?
Because if so, this has made paypal un-usable again

[AfricanB]

I've also been really frustrated by this but it seems that you need a VAT number in order to claim the vat back and in my case the amount is going to be very small so I"m not going to bother.  Maybe for you too @SiegeBarista ?  As a small business it sometimes feels like one just hasto deal with one blow after the other and minimal assistance.

[WandavdH]

I am in the same position where I don't earn nearly enough to register for VAT. How is one supposed to survive in this country when the government keeps taking and taking from small businesses that are trying to enrich their economy? I'm beyond frustrated...

[AfricanB]

Did you get a solution to this?  I am still getting reminders to add my VAT number (I don't have one as I earn far too little from what is essentially a hobby) and don't know what to do about it. #VAT

[DonCarlos2]

Just ignore it. You only need it if you want to claim it back. Just continue using PayPal as you use to and accept the fact that the South African Government takes 15% Vat on the PayPal fees only, not the amount received. Thanks.