South Africa updates e-services VAT

Wed 28th Feb 2018

South Africa has issued a draft update of the definition of digital services for VAT purposes.

Since June 2014, non-resident providers of electronic services have been liable to register and charge South African VAT on B2C and B2B transactions. The latter is unusual – most countries do not require a registration for business-to-business supplies; instead relying on the VAT reverse charge.

The new proposal, applicable from 1 October 2018, 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

Click for free South African VAT info