VAT, GST, consumption tax, sales tax, use tax – no matter what term, or name, is used it is clear that the taxation of the digital economy is growing in popularity.
Here we outline the tax jurisdictions where such destination-based indirect tax rules are in place.
European Union Value-Added Tax (VAT) rate: 28 EU Member State VAT rates - taxation depends on location of the consumer In January 2015 new rules on the taxation of cross-border supplies of digital services to EU-based consumers came into force.
As of today Taxamo provides support for merchants seeking to comply with the South Africa digital VAT system.
The South African Revenue Service (SARS) was one of the international pioneers in changing the approach to taxing digital services. On June 1, 2014, non-resident suppliers of certain “electronic services” to South African residents (or if payment originates from South Africa) are required to register for VAT.
All the key details of the South African VAT system are contained in the ‘Registration Guide for Foreign Suppliers of Electronic Services’ , we have also compiled a useful list of FAQs on the topic.
Digital tax compliance solution for domestic and international VAT on e-services.
Global digital tax solution provider Taxamo, has further expanded its offering to digital service merchants by releasing support for both domestic and international South African VAT. Support for South Africa follows recent announcements by Taxamo to expand support for digital service merchants, wherever they sell. Taxamo’s solution already supports EU VAT in 28 European Union Member States, U.S. Sales & Use Tax, and Japanese Consumption Tax.