VAT-registered non-resident suppliers of electronic services (“ESS suppliers”) must take note of the important changes to the tax invoice requirements to ensure compliance with the law.
VAT-registered ESS suppliers must take note of the important changes to the tax invoice requirements to ensure compliance with the law. South Africa imposed VAT on electronic services with effect from June 2014, and subsequently widened the scope of the definition of electronic services, which saw many non-resident entities having to register for VAT in South Africa from April 2019. VAT registered ESS suppliers are required to comply with the requirements of the South African Value Added Tax Act (“VAT Act“), including in relation to the issuing of tax invoices. To this extent, ESS suppliers are required to issue tax invoices that contain the particulars prescribed by the South African Revenue Service (SARS) in a public notice/Regulation. However, the VAT Act also provides that, where it is not possible or impractical to issue tax invoices, but sufficient records are available to establish the particulars of a supply, SARS may direct that some information be omitted from tax invoices issued, or that tax invoices need not be issued.
Source Baker & McKenzie
