South Africa: VAT guidance issued on electronic services by nonresidents
The South African Revenue Service (SARS) published a set of frequently asked questions (FAQs) outlining the VAT obligations for nonresident suppliers of electronic services. The information reflects the updated 2025 regulations, which came into force on April 1.
Key points from the guidance include:
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VAT applicability: VAT is imposed on taxable supplies of goods or services, including electronic services, at the standard rate of 15% or, where applicable, at a zero rate.
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Definition of electronic services: These are services supplied remotely via electronic means, including the internet or other telecommunication networks.
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Regulations in effect: The 2025 VAT regulations governing electronic services became effective as of April 1.
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Registration requirement: Nonresident suppliers that provide electronic services to both VAT-registered vendors and non-vendors must register and account for VAT on all such supplies.
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Vendor identification: The FAQs outline procedures for determining whether a supplier deals exclusively with VAT-registered vendors.
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Exempt supplies: Suppliers cannot register as VAT vendors for transactions that are exempt from VAT, even if they involve electronic services.
Source: sars.gov.za
VAT/GST rates 2024 in Africa
| Country | Standard VAT/GST Rate | Reduced Rates |
| Algeria | The standard sales tax (VAT) rate is 19%. | A reduced rate of 9% applies to certain industries |
| Egypt | The VAT rate is 14% | 5%, 10% |
| Equatorial Guinea | The standard VAT rate is 15% | 6% |
| Ethiopia | The standard VAT rate is 15% | |
| Mauritania | The standard VAT rate is 16% | |
| Mauritius | The standard VAT rate is 15% | |
| Morocco | The standard VAT rate is 20% | 10% |
| Nigeria | The standard VAT rate is 7.5% | |
| South Africa | The standard VAT rate is 15% | |
| Tanzania | The standard VAT rate is 18% | |
| Tunisia | The standard VAT rate is 19% | 7%, 13% |
| Uganda | The standard VAT rate is 18% |