The Minister of Finance published the regulations prescribing electronic services for the purpose of the definition of “electronic services” in section 1(1) of the Value-Added Tax Act 89 of 1991 (the VAT Act) in Government Notice 429 of 18 March 2019 (Updated Regulations). These regulations come into effect from 1 April 2019 and update the regulations published in Government Notice R.221 of 28 March 2014 (Original Regulations). In addition, various amendments have been made in the Rates and Monetary Amounts and Amendment of Revenue Laws Act 21 of 2018 in respect of electronic services (the amendments). These amendments (including those relating to intermediaries) come into effect on 1 April 2019. The Frequently Asked Questions (FAQs) in this document have been compiled on the basis of questions that vendors and the public at large are likely to have about the implications of the Updated Regulations and the amendments.
The FAQs are drafted purely to assist foreign electronic services suppliers, intermediaries, vendors and the public at large to obtain clarity and to ensure consistency on certain practical and technical aspects relating to the Updated Regulations and amendments.
Source: sars.gov.za
