South Africa VAT Electronic Services:

The South African value-added tax (VAT) legislation pertaining to electronic services has evolved significantly in recent years. Amendments to the electronic services regulations, effective 1 April 2019, not only introduced an overarching definition of “electronic services” but also included a group exclusion in respect of specific supplies within a group of companies. As the VAT legislation does not make any distinction between business-to-business (B2B) and business-to-consumer (B2C) transactions, the explanatory memorandum issued with the 2019 amendments indicated that this exclusion is to limit the administrative burden on supplies between companies in the same group.