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South Africa VAT changes in 2013 budget – Amazon ebook VAT

  • VAT
  • 02 March 2013 | Richard Asquith

South Africa VAT changes in 2013 budget – Amazon ebook VAT

The 2013 South African budget was published on 27 February 2013. Contrary to newspaper speculation, it did not include a rise in the 14% Value Added Tax rate. However, it did contain a number of measures around the VAT compliance regime. This includes requiring foreign sellers of digital books (e.g. Amazon), games or films to register for South African VAT.

The changes included:

  • Additional VAT relief on bad debts
  • Clarification of the foreign currency translation rules for invoices
  • Additional provision of VAT zero rating on the exports
  • The VAT registration process will be simplified
  • Changes to the tax point rules for contingent services
  • VAT input relief for the provision on board aeroplane entertainment (films, music, games)
  • The provision of digital services (music, films etc) by foreign companies will trigger a South African VAT registration

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.