- Section 54(2B) effective from 1 April 2019 requires intermediaries to report and account for VAT on electronic services supplied for unregistered foreign providers.
- Foreign suppliers exceeding the VAT threshold but not registered remain liable to register and account for VAT.
- Section 54(2B) allows intermediaries and principals to agree in writing to treat supplies as made by the intermediary.
- Both intermediary and principal are jointly and severally liable for duties and tax payments under the VAT Act.
- Amendments apply to registered principals to reduce administrative burden and prevent double VAT accounting.
- Facilitates compliance checks and audits.
Source: sars.gov.za
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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