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.