On 23 June 2026, the South African Revenue Service SARS Commissioner welcomed the unanimous judgment of the Constitutional Court in Lueven Metals Pty Ltd versus the SARS Commissioner, which confirmed SARS interpretation of Section 111f of the Value-Added Tax VAT Act, 1991.
The judgment clarified that the zero-rating of gold supplied to the South African Reserve Bank SARB, the South African Mint Company Pty Ltd, or a registered bank applies only where the gold is supplied in one of the prescribed forms and has not undergone any manufacturing process other than refining or the manufacture or production of those prescribed forms.
The court confirmed that the zero-rating of gold under Section 111f did not apply to second-hand or recycled gold that has already undergone prior manufacturing. This ruling provides clear legal guidance, puts an end to aggressive VAT interpretations, and reinforces SARS commitment to enforcing tax law in a principled manner. This judgment aims to protect the tax base and safeguard revenue for the benefit of all South Africans.
