VAT Registration of non-resident suppliers of e-commerce services

[Spinnekop]

So.

Got this from our auditors this morning.

 

This should be interesting.........

 

So for instance the small shoppie in the US supplying novelties, i.e. carbon cycling parts or what ever has to register for VAT if it wants to supply to SA?

Or am I understanding this incorrectly?

 

So all online shops are basically going to say "we don't ship to South Africa".

Well...that is what I would have done if I was a supplier doing ad-hoc sales to SA.

 

Should kill a couple of imports right there.

Well played SARS.

VAT Alert e-commerce.pdf

[shaper]

Overseas suppliers do not charge you VAT, so why would they need to register with SARS?

 

You pay VAT and duty on all imported goods anyway.

 

Sounds like SARS are wanting free holidays all over the world chasing e-commerce businesses!!

[dillon]

there is no way they can police this, I don't think it is targeting physical goods that are shipped, as VAT is collected on those items. But SARS loose on things like software, music, ebooks, essentially anything that is downloaded or a web based service. (think amazon)

[Cycling Major]

This ridiculous!!! We as the consumer, have to pay an output VAT for imports anyhow... Why bring the non residents into this? Now they wont go to the trouble to comply with all the regulations of ANOTHER country and we won't have any benefit of competition between suppliers to keep our prices low!!!

 

Don't understand why they will bring something in on money they already get?!?

[Sportsworld.co.za]

Isn't it amazing that a few things this Government does REALLY well is:

 

Income Tax collection

Customs Duty

VAT collection

 

 

I think they're also after the web based services such as Appstore etc etc, as you pay VAT on items you bring in anyway.

[dillon]

Does not affect me, my LBS is cheaper than overseas online stores.....

[Spinnekop]

Does not affect me, my LBS is cheaper than overseas online stores.....

 

Mine too.

 

But my LBS can only get run of the mill cycling stuff. Few shops in SA carry "nice" stuff.

 

So it not about price. It is about availability.

I have had my Sidi shoes for close to year now and STILL not in SA shops.

 

My Zipp handlebars cannot be bought in SA

 

I am looking for a carbon dust cap for my headset. Nudda at my LBS

 

Etc. etc. etc.

 

But let's not get into that because that is not what the thread is about.

[Longbarn Killer]

Don't worry Spinnekop, this won't affect bike shops and what you can order online.

 

This refers to "Services" not "goods". The online bike shops are safe on this one as they supply goods. VAT is paid on goods upon entry into SA. SARS gets their money then. VAT obviously cannot be paid on services in this manner. The only online service that I can think of is the downloading of software and music etc.

 

As mentioned previously, this will be difficult to police. In fact, VAT law currently requires you to make a declaration to SARS everytime you purchase an online service and pay the required VAT over. I have never heard of anyone actually doing this.

Edited July 12, 2013 by Longbarn Killer

[Ysterperd]

They are not conducting an enterprise in the RSA thus SARS wont require that they register. VAT are essentially imposed on all goods or services consumed in the republic and therefore you as importer will have to pay VAT on all imports. You will however be able to claim back the VAT paid if you are conducting a business and in course of business import stuff. If not you are the end consumer and have to bear the brunt of paying and supporting this great country