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.
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.
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.
See more Taxback International Articles
Poland: Quick Fixes
28th January 2020: On 4 December 2019, the Council of the European Union amended the Directive 2006/112/EC and announced the Council Directive (EU) 2018/1910.
VAT rate changes 2020.
24 January 2020: Canary Island, Germany, Czech Republic, Ireland and Italy are some of the countries to be impacted by VAT changes in 2020.
Italy: VAT group update for non-resident companies.
24th January 2020: Non-resident Italian entities with non-taxable activities can be part of a VAT group.