- New VAT rules were introduced for airtime vouchers sold in South Africa but usable only for telecommunication services outside South Africa.
- The voucher sale itself is disregarded for VAT purposes under section 8(31).
- Any amount retained by the South African distributing vendor is treated as consideration for a separate distribution service.
- That distribution service is deemed to be consideration equal to the difference between the voucher’s purchase price and selling price.
- The deemed distribution service may qualify for zero-rating under section 11(2)(zA) because the telecom services are consumed outside South Africa.
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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