- South Africa will reform its non-resident digital services VAT regime on April 1, 2025.
- Foreign providers of digital services will no longer need to register for VAT in South Africa if they only service South African VAT registered businesses.
- The reverse charge will apply, and the South African customer will report the VAT.
- If the non-resident provider also supplies consumers, then VAT registration and charging obligations on B2B remain.
- Non-resident, VAT registered electronic service providers can use intermediaries to report VAT.
- The rules on digital services and intergroup exclusions will be tightened.
Source: vatcalc.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.
