UK Based Global VAT and Tax Consultants

Digital Services Taxation


South Africa has long been one of the states that insist upon VAT registration for foreign entities supplying inward digital services, with the unusually aggressive position of this applying to B2B as well as B2C transactions.

As of 1 April, it has now widened the definition of services caught by the provision to include online advertising, online consulting, online training, online gaming, and software subscriptions. It has, however, raised the threshold for registration from ZAR 50,000 per annum to ZAR 1,000,000 (approximately US$ 71,000/ €63,000/ £ 56,000).