South Africa – Africa (International) – FAQ

Is there a legal rule in South Africa on the validity period of Giftcards?

Yes. Under the Consumer Protection Act (CPA) section 63(1), Giftcards must be valid for at least three years from the date of issue. Shorter periods are not permitted. Providers may voluntarily offer longer validity.

What consumer rights apply in South Africa for expired Giftcards?

Under CPA section 63(1), Giftcards are valid for three years. Only after this period may they expire. Consumers may claim remaining value during the full validity period; providers may not charge non-use fees.

How are Giftcards treated for tax purposes in South Africa (VAT, single-purpose / multi-purpose)?

Giftcards are treated as “consideration Giftcards” under the VAT Act. VAT (15%) is due only at redemption. There is no distinction between single-purpose and multi-purpose Giftcards.

What special rules apply in South Africa to the sale, issuance, or redemption of Giftcards?

Giftcards may not expire before the statutory three-year period. Sellers must clearly inform customers about redemption locations, residual balances and refund rights. Tax: VAT only at redemption; no double taxation.