An increased number of non-resident suppliers of electronic services (e-services) will be required to register for value added tax (VAT) purposes in South Africa beginning 1 April 2019 due to an amendment to the definition of “electronic services.”
Previously the definition was limited to specific electronic services but has now been expanded to include, subject to very limited exceptions, all services supplied by means of any electronic agent, electronic communication, or the internet for a consideration. The expanded definition is intended to treat supplies by foreign suppliers and supplies by domestic suppliers similarly for VAT purposes.
Suppliers will therefore, subject to certain exceptions, must register for VAT purposes in South Africa when:
Read a March 2019 report [PDF 103 KB] prepared by the KPMG member firm in South Africa
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