VATLive > Blog > VAT > South Africa extends e-services VAT to B2B

South Africa extends e-services VAT to B2B April 2019

  • Mar 27, 2019 | Richard Asquith

The South African National Treasury has published details of the extension of the responsibility for non-resident providers of electronic services to businesses to charge and collect 15% VAT from 1 April 2019. Non-resident providers of such services, including billing platforms and other facilitators, to consumers have been required to register for VAT since June 2014.

In addition, the definition of e-services for consumers and businesses has been extended and now applies to the following supplies:

  • Online gaming and games of change
  • Internet-based auctions
  • Online journals, blogs, newspapers, social media, webcasts, apps and web services
  • Online media, music, e-books and images
  • Education, excluding those services provided and regulated by the education authorities
  • NEW any services supplied by means of an electronic agent, electronic communication or the internet. 

The VAT registration threshold for such taxable transactions has also been raised from R50,000 to R1million. This is in line with the main registration threshold.

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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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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