South Africa delays e-services changes to Apr 2019

Thu 27th Sep 2018

South African plans to update the definition of digital services subject to VAT have been delayed from 1 October 2018 to 1 April 2019.

In addition, as many foreign marketplaces for e-services will now have to register to levy VAT, the registration threshold will be increased from R50,000 to R1 million, which would then align it to the domestic compulsory VAT registration threshold.

The new proposal, applicable from 1 April 2019, include the following amendments

  • It has removed a number of e-services currently exempted from VAT. Effectively, only education e-services provided by foreign public bodies and telecoms services would be exempted from VAT
  • Intermediaries and online platforms responsible for issuing invoices and collections on such supplies will be liable to register, too


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