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South Africa details foreign electronic services to be subject to VAT

  • VAT
  • 09 April 2014 | Richard Asquith

South Africa details foreign electronic services to be subject to VAT

As South Africa implements VAT on foreign supplies of electronic services to its consumers, the National Treasury has confirmed which services are affected by the changes.

  • Gaming: electronic, internet and interactive games, including games of chance and gambling
  • Online auctions
  • Ebooks: including audio/visual variations
  • On-line learning: education; tuition; webcasts etc for commercial purposes
  • Subscriptions or micro-payments for social networking sites, App’s, journals, webinars etc

It is currently planned that South African VAT will be charged at 14% on these services from 1 July 2014. This follows a number of VAT delays since the start of this year.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.