Are you a foreign electronic services supplier in South Africa, and entitled to cancel your VAT registration?

VAT Regulations prescribing electronic services were amended and with effect from 1 April 2019, the registration threshold for which a foreign electronic services supplier is required to register for VAT, was increased from R50 000 to R1 million.

As a result, a foreign electronic services supplier may wish to cancel its registration if its total value of taxable supplies will not exceed the threshold of R1 million, in any consecutive 12-month period.

Section 72 of the VAT Act allows the Commissioner to make an arrangement as to the manner in which the provisions of the Act shall apply. Therefore, Binding General Ruling (VAT) 51 constitutes such an arrangement, where “a foreign electronic services supplier that wishes to have its registration canceled in the circumstances where the total value of taxable supplies will not exceed R1 million in any consecutive period of 12 months, may make a written request to have the registration canceled”.

Are you a foreign electronic service supplier in South Africa, and do you want to cancel your VAT registration, because the ruling applies to you?

We apply to SARS on your behalf to cancel your VAT Registration.