South Africa map

Changes to VAT treatment of e-services in South Africa

E-Service VAT rate change in South Africa

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 Newsletter!

ROI Calc Calculate your ROI