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South Africa updates e-services VAT

  • Feb 27, 2018 | Richard Asquith

South Africa updates e-services VAT

South Africa has issued a draft update of the definition of digital services for VAT purposes.

Since June 2014, non-resident providers of electronic services have been liable to register and charge South African VAT on B2C and B2B transactions. The latter is unusual – most countries do not require a registration for business-to-business supplies; instead relying on the VAT reverse charge.

The new proposal, applicable from 1 October 2018, include the following amendments

  • It has removed a number of e-services currently exempted from VAT. Effectively, only education e-services provided by foreign public bodies and telecoms services would be exempted from VAT
  • Intermediaries and online platforms responsible for issuing invoices and collections on such supplies will be liable to register, too

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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 can be contacted at: 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.