VAT Regulations on Digital Services and Electronic Tax Invoices
VAT Regulations on Digital Services and Electronic Tax
VAT Regulations on Digital Services and Electronic Tax Invoices
Background
In 2019, the Government through the Finance Act 2019 amended the Value Added Tax Act, 2013 (VAT Act) to tax certain supplies made through a digital marketplace. The VAT Act defines a digital marketplace as “a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means.”
The tax was to take effect after publication of regulations to guide its implementation. On 10 September 2020, the Cabinet Secretary, National Treasury (CS) gazetted the Value Added Tax (Digital Marketplace Supply) Regulations, 2020 (the Regulations). The Regulations were issued a few months after the government requested for public comments on the draft regulations.
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