The format of tax invoices for electronic services

(Please also refer to our previous Finance Blog, dated 16 May 2014, entitled “VAT: Electronic Services to be introduced on 01 June 2014” for further information in this regard.)

AMENDMENTS TO THE VAT ACT  

The format of tax invoices for electronic services: 

The following information must be reflected on the tax invoice for electronic services (per draft GBR):

(i)         An abridged tax invoice must be issued irrespective of the value of the supply.

(ii)        The tax invoice must contain the following information:

(a)        The name, address and VAT registration number of the supplier.

(b)        An individual number with a distinct indicator for a supply made to an electronic services recipient (for example ZAR) – the number needs not be serialised.

(c)        A description of the electronic services supplied.

(d)        The consideration in money for the supply in the currency of any country.

(e)        If the consideration is reflected in the currency of:-

(i)         South Africa, the amount of the VAT charged or a statement that it includes a charge for the VAT and the rate at which the VAT was charged: or

(ii)        Any country other than South Africa, the amount of the VAT charged in the currency of South Africa or a separate document issued by the electronic services supplier to the electronic services recipient reflecting the amount of the VAT charged in the currency of South Africa.

(iii)       Foreign currency charges must be converted in ZAR by using the exchange rates
published on one of the following web-sites:

www.bloomberg.com/markets/currencies/cross-rates

• www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html

(iv)       Until 31 March 2015 prices may be quoted excluding VAT provided that the supplier has a statement on its website indicating that VAT will be levied on supplies of electronic services.

(v)        No clarity exists at this stage on whether the general requirements to issue electronic tax invoices will apply to this category of vendors.

Information courtesy of:  LexisNexis South Africa

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