- FAQs on VAT for electronic services by nonresidents were posted online by the South African Revenue Service on April 2
- VAT is charged on taxable supplies of goods or services, including electronic services, at either 15 percent or zero percent
- Electronic services are defined as services supplied remotely by electronic means, such as via the internet or telecommunications
- The 2025 regulations became effective on April 1
- Nonresident electronic service suppliers must register and account for VAT on supplies to both VAT-registered vendors and non-vendors
- Guidance is provided on determining if supplies are made solely to VAT-registered vendors
- Taxpayers cannot register as vendors for exempt supplies of electronic services
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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