The National Treasury published a draft regulation with proposed rules relating to value added tax (VAT) and services supplied by electronic means. In general, the draft regulation would require non-residents supplying services electronically to register and account for VAT.
In South Africa, the rate of VAT increased to 15% effective 1 April 2018.
With the increased rate of VAT and now with the proposal for VAT registration under the draft regulation, it is anticipated these measures together will significantly affect the entire business community as well as end-use consumers.
The draft regulation:
Read a November 2018 report [PDF 104 KB] prepared by the KPMG member firm in South Africa
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