Print Page   |   Report Abuse
News & Press: Opinion

Treasury publishes ESR for comment

30 January 2014   (0 Comments)
Posted by: Author: National Treasury
Share |

Author: National treasury

The Electronic Services Regulations (ESR) relating to value-added tax on digital imports were published for comment on Thursday, National Treasury said.

"The current application of VAT on imports does not lend itself to the effective enforcement on imported services or e-commerce where no border posts [or parcel delivery agents] can perform the function as collecting agents," the Treasury said.

"The net result is that the local consumers can buy imported digital products without paying VAT. This outcome not only places local suppliers of digital services at a competitive disadvantage but also results in a loss of revenue for the fiscus."

The ESR was published on the websites of the SA Revenue Service and National Treasury.

Written comments had to be submitted by February 20.

The publication follows the announcement by Finance Minister Pravin Gordhan last year that all foreign businesses supplying e-books, music and other digital services in South Africa would be required to register as VAT vendors.

Imported services included the supply of e-books, e-music, e-films, software, images, games, information system services, internet-based auction services, maintenance services, and educational services.

This article first appeared on 


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.


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®  ::  Legal