resources-post-top-bg Changes to VAT treatment of e-services supplied in a B2B scenario in South Africa.

Changes to VAT treatment of e-services supplied in a B2B scenario in South Africa.

16th April 2019: Changes to the VAT treatment of e-services supplied in a B2B scenario are live since 1 April 2019.


The scope of e-services to which regulations previously applied included the provision of certain educational services, games and games of chance, internet-based auction services, e-books, audio-visual content, still images, music and various subscription services. The new e-services regulation changes broaden the definition of e-services.

From April 1 2019, e-services include any services supplied by means of an electronic agent, electronic communication or the internet for any consideration.

Get our monthly VAT guide to ensure you never miss another VAT update!

The only “e-services” that are excluded under the new regulations are:
– Telecommunications services;
– Supply of educational services by a person regulated by  educational authorities in foreign countries;
– Certain inter-company supplies within a company group.

More importantly, the revised e-services regulations will not distinguish between B2B and B2C supplies.

Action Required

Due to the newly implemented changes, all non-resident suppliers of electronic services (not under the exception) may have a potential VAT registration liability in South Africa if their total turnover has breached the registration threshold of 1,000,000.00 ZAR in a 12-month timeframe.


If you have any queries or you are worried that your business is not prepared, please contact our team for free bespoke advice.

For further information, subscribe to our blog!

See more Taxback International Articles

Mexico: Digital Services

30th March 2020: From 1 June 2020, Mexico plan to collect VAT at a rate of 16% on the sale of certain goods and services to cover digital services providers.

Hungary: Real Time Reporting

23rd March 2020: Hungarian authorities have recently announced some changes to the current real-time reporting data requirement.

Taxback International receive SAP Concur's Distinguished Partner Award

18th March 2020: SAP Concur awarded Taxback International a Distinguishing Partner Award in the category of ‘App Center & Platform Partners'.