Explore the requirements and rules that apply to indirect taxes in Eswatini (formerly Swaziland).
Explore the requirements and rules that apply to indirect taxes in Eswatini (formerly Swaz
Types of indirect taxes (VAT/GST)
What is standard VAT/GST rate?
15 percent effective 1 August 2018 (previously 14 percent).
Are there any reduced rates, zero rates or exemptions?
Zero-rated supplies include:
Exempt supplies include:
What are the general and specific place of supply rules, if applicable?
The place of supply of:
Who is required to register for VAT/GST?
All business with an annual turnover of taxable supplies exceeding 500,000 Swazi Emalangeni (SZL) or that expects to exceed this threshold.
Is voluntary VAT/GST registration possible for an overseas company?
Yes but only at the discretion of the Commissioner- General.
Does an overseas company need to appoint a fiscal representative?
Yes, however, the nominated person/public officer must be a resident.
Is VAT/GST grouping* possible?
Yes but only at the discretion of the Commissioner General.
How frequently are VAT/GST and other indirect tax returns submitted?
Can returns be filed and payments be made electronically?
What are the exchange rate rules?
Where an amount is expressed in a currency other than SZL, the amounts must be converted into SZL at the average daily selling exchange rates of the previous month for the currency concerned.
Can an overseas company recover VAT/GST and other indirect taxes if not registered for VAT/GST locally?
Is it a prerequisite that output tax be charged before input tax can be claimed?
Are there any exemptions with the right to recover or deduct input VAT?
The following expenditures are prohibited deductions:
For what period of time may input tax not previously claimed be claimed (i.e. prescription)?
Where a VAT return reflects a refund due to the taxpayer, is the refund paid to the taxpayer or is the taxpayer required to utilize the refund as a credit against future payments?
The taxpayer can elect to be refunded or to offset the credit against other taxes or future VAT payments. Prior to refund the Eswatini Revenue Authority may conduct an audit.
Is a business required to issue tax invoices?
Is it possible/mandatory to issue invoices electronically?
Yes, it’s possible.
Is it possible to issue recipient-created tax invoices?
Do tax audits take place on a regular basis?
Yes, tax audits are driven mostly by taxpayer’s risk profile and refunds.
Are audits done electronically in your country/territory (i.e. e-audit)? If so, what system is in use?
What penalties can arise from non-compliance?
Fines up to SZL15,000 and/or up to 3 years imprisonment for non-compliance.
Late submission and payment: 2 percent interest per month on tax payable.
Additional tax up to a maximum of 200 percent.
Are there unique country/territory-specific indirect tax rules that differ from 'standard' indirect tax rules in other jurisdictions?
Does a reverse charge mechanism apply?
Can VAT on reverse charges be claimed as input tax, to the extent that the expense on which the reverse charge VAT is accounted for, is used for taxable purposes?
Can non-residents appoint local agents in order to avoid reverse charge VAT by virtue of charging standard rate VAT and accounting for such VAT through the agent?
Yes, but subject to the approval by the Eswatini revenue authority.
Are there indirect tax incentives available (e.g. reduced tax, tax holidays)?
Is it possible to apply for formal or informal advance rulings from the tax authority?
Are rulings and decisions issued by the tax authorities publically available?
Are there other indirect taxes not commented on above?
Yes, other indirect taxes include:
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*By ‘grouping’ we mean: either a consolidation mechanism between taxpayers belonging to the same group (payment and refund are compensated but taxpayers remain distinct) or a fiscal unity for VAT/GST purposes (several taxpayers are regarded as a single taxpayer).
All information contained in this document is summarized by KPMG in Eswatini, a member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.