Paragraph (b)(vi) of the Value Added Tax Act No 89 of 1991, (“VAT Act”), definition of “enterprise” refers to the supply of electronic services from a place in an export (foreign) country to a South African (“SA”) resident; where payment for the services are made from a local bank account; and the recipient has a business-, residential-, or postal address in SA.
Paragraph (b)(vii) refers to the activities of an intermediary.
Notice 1594 provides the following –
- The name and VAT registration number of the electronic services supplier;
- The name and, where the electronic services recipient is a vendor, the VAT registration number of the electronic services recipient;
- The business address, residential address or postal address of the electronic services recipient;
- The date on which the tax invoice is issued;
- A full and proper description of the electronic services supplied; and
- The consideration in money for the supply in the currency of any country and if the consideration is reflected in the currency of—
1. the Republic—
( aa) the value of the supply; and
(bb) the amount of tax charged or a statement that the consideration includes a charge in respect of the tax and the rate at which the tax was charged; or
2. any country other than the Republic—
(aa) the amount of the tax charged in the currency of the Republic and the exchange rate used; or
(bb) a separate document issued by the electronic services supplier reflecting the amount of tax charged in the currency of the Republic and the exchange rate used.
Find a copy of Public Notice 1594
here.
