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DonCarlos2 · ‎Jul-29-2024

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.

DonCarlos2 · ‎Nov-03-2023

Hi Gale Since were not getting Clarity from Paypal Moderatos on here, i thought id give you an update. I chatted with a Paypal agent the other day, the agent said the Vat is on the Fees only, not on the amount received. So if the fees for the transaction is R1000, the Vat will be R150. I Hope the agent is correct, but she's the 2nd person to tell me this, another person said the same thing on Reddit. This is for Businesses and Individuals. Its for every single PayPal account in South Africa. Vat registered Businesses can claim the funds back from SARS, but must ensure that their VAT number is submitted to Paypal. Cheers.

DonCarlos2 · ‎Nov-01-2023

Your feedback doesn’t give me any clarity. What you said is already in my question. I want to make sure that the 15% vat is only on the fees and not on the amount received?

DonCarlos2 · ‎Oct-29-2023

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.

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