South Africa says no VAT for Microsoft Ireland IT services

Wed 27th Feb 2013

South Africa has confirmed that Microsoft Ireland is permitted to provide local customers with services without the need to charge the local 14% VAT.

The case arose from a complaint about an advertising campaign that Microsoft was running in South Africa for its 365 Product range, which offers improved Cloud-based access to Microsoft Office tools. This stated that there was no South African VAT due from local buyers. Whilst the South African tax authority (SARS) confirmed that the wording of the advert was incorrect, it was confirmed that Microsoft Ireland did not need to register for or charge South African VAT since it is not resident for tax purposes there.

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