Print Page   |   Report Abuse
News & Press: Opinion

E-commerce Suppliers To Register For VAT

13 November 2013   (0 Comments)
Posted by: Author: Webber Wentzel
Share |

Author: Webber Wentzel

Suppliers of electronic services from a place in an export country (generally outside South Africa) made to a recipient who is resident in South Africa; or where one or more payments for the services originates from a South African bank, will be required to register as VAT vendors.

The amendments in the draft TLAB provided for suppliers of "e-commerce services" by a person that not a resident in South Africa. In response to comments to the amendments in the draft TLAB, the amendments in the TLAB provide for suppliers of "electronic services" to register as VAT vendors, regardless whether the suppliers are residents in South Africa or foreign persons, as long as such supplies of electronic services are made in an export country to the South African recipients.

Unlike the amendments in the draft TLAB, which defined e-commerce services, the scope of "electronic services" in the VAT Act will be prescribed by the Minister by regulation in terms of the VAT Act.

These suppliers of electronic services will be required to register at the end of any month where the total value of taxable supplies made has exceeded R50 000.

These suppliers will be required to account for VAT payable on a payments basis with effect from the date of VAT registration, but must account for VAT payable on an invoice basis from the commencement of the tax period immediately following the tax period when the total value of taxable supplies of that enterprise has exceeded R50 000.

The VAT vendor will then be required to charge 14% VAT on a VAT invoice for the electronic services supplied to South African recipients.The effective date for the amendments has been changed to 1 April 2014.

The supply of services by a home owners association

The amendments in the TLAB are the same as the amendments in the draft TLAB except that the effective date for the amendments has now been changed to 1 April 2014. The amendments in the draft TLAB have been discussed in a previous newsletter.

The supply of services for contingent consideration

The amendments in the TLAB are the same as the amendments in the draft TLAB except that the effective date for the amendments has now been changed to 1 April 2014. The amendments in the draft TLAB have been discussed in a previous newsletter.

Entertainment supplied on board a flight or ship

The amendments in the TLAB are the same as the amendments in the draft TLAB except that the effective date for the amendments has now been changed to 1 April 2014. The amendments in the draft TLAB have been discussed in a previous newsletter.

Imported goods abandoned, destroyed or damaged

The amendments in the TLAB are the same as the amendments in the draft TLAB except that the effective date for the amendments has now been changed to 1 April 2014. The amendments in the draft TLAB have been discussed in a previous newsletter.

Conversion of share block scheme to sectional title

The amendments in the TLAB are the same as the amendments in the draft TLAB except that the effective date for the amendments has now been changed to 1 April 2014. The amendments in the draft TLAB have been discussed in a previous newsletter.

Conversion of a share block scheme to sectional title

The amendments in the TLAB are the same as the amendments in the draft TLAB except that the effective date for the amendments has now been changed to 1 April 2014. The amendments in the draft TLAB have been discussed in a previous newsletter.

Supply of services for contingent consideration

The Value-Added Tax Act ("VAT Act"), currently deals with the supply of goods for contingent consideration, but not with the supply of services for contingent consideration.

The TLAB proposes that where services are supplied under an agreement for consideration which is not determined at the time the services are rendered, the supply of those services shall be deemed to take place when, and to the extent that any payment in terms of the agreement is due or received or when an invoice relating to the supply is issued by the supplier.The above effective amendment will apply to services supplied on or after 1 April 2014.

This article was first published on webberwentzel.co.za


WHY REGISTER WITH SAIT?

Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal