What the SARS draft crypto tax guide means for everyday spending

On 1 July 2026, SARS published its Draft Guide to the Taxation of Crypto Assets, its first substantial guidance on the subject since 2018. It is open for public comment until 31 August, and MoneyBadger will be making a submission, as we did with the draft Capital Flow Management Regulations earlier this year.

Our first observation is a positive one: The draft guide is well written. It is clear, thorough, and opens with a full account of the legal and regulatory history of crypto assets in South Africa, from the earliest position papers through to the current licensing regime. Anyone interested in how crypto came to be taxed in this country will find it a useful read in its own right, and we would encourage people to read it. Credit is due to whoever put it together.

‍For the merchants and payment providers we work with, the position is simple: Merchants never hold, touch, or custody any digital currency at any point. When a merchant asks for R100, exactly R100 is settled to them in rand. Because the merchant receives rand, it is an ordinary rand sale in their books, their VAT treatment is unchanged, and they have no crypto-specific tax obligations as part of our service since we settle them in rand. What they see is a normal rand settlement through the payment provider they already use, with no crypto on their balance sheet.

‍The tax questions in the guide fall on the person spending the Bitcoin, because each spend is treated as a disposal. We think there is a better way to handle everyday spending, one that is simpler for individuals, easier for SARS to administer, and supportive of good wallet design.

‍Our CEO, Carel van Wyk, has written a personal piece setting out his reading of the guide and a proposal, including how a designated day-to-day spending wallet could work in practice. His take and suggestions are here: https://www.linkedin.com/posts/carelvwyk_draft-documents-for-public-comment-share-7486080626807390208-KiHg/

We would encourage everyone with an interest in the future of digital payments in South Africa to read the draft guide and submit their own comments before 31 August.

This page is for general information and does not constitute tax or financial advice. Readers should consult a registered tax practitioner about their personal circumstances.