VAT Registration – Supply of Electronic Services by Foreign Suppliers and Foreign Intermediaries

14 April 2023 – Section 23(1A) of the Value-Added Tax Act, 1991, was amended, with effect from 5 January 2023, to ease the administration burden for a foreign supplier of electronic services and a foreign Intermediary (an Intermediary who is not a resident of the Republic), by introducing an exception when calculating the R1 million threshold. This exception applies where the said value of taxable supplies made has exceeded R1 million, in a consecutive period of 12 months, solely as a consequence of abnormal circumstances of a temporary nature. In such instance, there is no requirement for a Foreign Supplier of electronic services or a Foreign Intermediary to register for South African VAT.

• VAT-REG-02-G02 – Supply of Electronic Services by Foreign Suppliers and Foreign Intermediaries – External Guide