South Africa’s new VAT rules (Regulations No. 5993, effective 1 April 2025) update the treatment of electronically supplied services by foreign digital providers. B2B-only suppliers no longer need to register for VAT, while B2C and mixed suppliers must register if their turnover exceeds the threshold. Intra-group digital services are VAT-exempt under specific conditions. The changes aim to modernize compliance and support digital business models while safeguarding the local tax base.
South Africa Updates VAT Rules for Foreign Digital Suppliers (April 2025)
Public
Other countries
Author: Ljubica Blagojević
Category:
General subject related
Views:
1186
Content accuracy validation date:
29.04.2025
Content accuracy validation time:
08:11h
South Africa has updated its VAT framework for electronically supplied services through Regulations No. 5993 (14 March 2025), significantly impacting foreign digital service providers.
Important Changes:
- B2B Supplies:
Foreign suppliers selling exclusively to VAT-registered South African businesses are no longer required to register for VAT in South Africa. - B2C Supplies:
VAT registration remains mandatory for foreign suppliers selling to non-VAT-registered customers (e.g., individuals, small businesses, educational institutions). - Mixed B2B and B2C Supplies:
Suppliers making both B2B and B2C sales must register for VAT if the combined turnover exceeds the threshold. VAT applies to both supply types. - Intergroup Supplies:
These are excluded from VAT if: - The foreign supplier is non-established in South Africa.
- The recipient is part of the same corporate group.
- The digital service is exclusively developed for the South African entity’s use.
These changes simplify compliance for foreign digital businesses with B2B-only models but maintain strict rules for B2C and mixed suppliers. The regulation also recognizes intra-group innovation efforts, reducing VAT burdens for corporate structures. Overall, this reform modernizes VAT obligations in line with digital economy practices while protecting the South African tax base.
Other news from Other countries
China Introduces New Reporting Requirements for Digital Platform
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
China's State Council has imposed tax-related regulations on digital platform operators, requiring quarterly reports and business details within 30 days, with exemptions for service providers. On June 20, 2025, the State Council of China announced rules that, in accordance with Order of the State Council No. 810, require digital platform operators, including foreign operators, to report tax-relate... Read more
Brazil’s Tax Reform: Simplifying the System
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Brazil's first tax reform in over 30 years aims to simplify and modernize the tax system by unifying four taxes into a dual Value Added Tax (VAT) system and introducing a tax on harmful products. Despite short-term challenges, the reform promises a simpler, more predictable tax system. Brazil’s first tax reform in over 30 years aims to simplify and modernize the tax system by unifying four t... Read more
Multi-State Sales Tax for Philadelphia Businesses
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Philadelphia businesses selling across state lines face complex sales tax obligations due to unique rules and filing schedules. Understanding these varies by state, preventing delays, penalties, and stress. Common issues include early/late registration, incorrect tax rates, poor record-keeping, wrong filing frequency, and missing zero-filings. Proactive management is essential for compliance, incl... Read more
UAE Launches PINT AE v1.0.1 as Official E-Invoicing Standard Ahead of Mandate
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
OpenPeppol has released PINT AE v1.0.1, the UAE-specific specification for electronic invoicing, with technical refinements and alignment expected by early 2026. This marks a significant milestone in UAE's digital tax transformation. The most recent iteration of the UAE-specific Peppol specification for electronic invoicing, PINT AE v1.0.1, has been made available by OpenPeppol. The update adds im... Read more
New Tax Guidelines for Entities in Vietnam
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The VAT policy was altered both for VAT taxable and non-VAT taxable subjects, according to VAT Law No. 48/2024/QH15, Government Decree No. 181/2025/ND-CP, and Minister of Finance Circular No. 69/2025/TT-BTC, that started July 1, 2025. According to Government Decree No. 181/2025/ND-CP, Minister of Finance Circular No. 69/2025/TT-BTC, and VAT Law No. 48/2024/QH15, the VAT policy will change for both... Read more
Understanding VAT Regulations in the Czech Republic
Public
Author: Ema Stamenković
VAT, or "Daň z přidané hodnoty", is an indirect tax on consumption in the Czech Republic, managed by the Tax and Customs Authorities. VAT is an indirect tax on consumption that is referred to locally as "Daň z přidané hodnoty (DPH)" in the Czech Republic. At various points in the supply chain, it is used to describe the added value of products and services. The Czech Republic is a member o... Read more
Philippines: New VAT Portal for Non-Resident Digital Service Providers
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The Philippines has launched its VAT on Digital Services (VDS) portal for non-resident providers to register, file, and pay VAT. Initially, registration was via ORUS due to delays. Under Republic Act No. 12023, the rules cover a wide range of digital services used in the country, even without local presence. Providers must obtain a TIN, open a VDS account, and file quarterly returns. The BIR can a... Read more