Playing field between domestic and foreign vendors, as well as efficientĬollection and enforcement of their tax systems. Implementation of these rules, as we expect all countries will haveĬommon objectives of fair taxation, maintaining (or achieving) a level Inferring South Africa should simply duplicate regulations that haveīeen designed for other countries with different legal frameworks,Ĭustoms, and backgrounds. References to the EU and Norwegian rules should not be read as
Recommended as a model for taxing digital sales to final consumersĭuring a plenary session of the OECD Global Forum on VAT held in Tokyo Unlike the EU, the Norwegian system was devised to deal withĪ single country, rather than a trading block, and it was even Satisfying the demands of both the Norwegian tax administration andīusinesses. The Norwegian system has generally been viewed as Vendors to Norwegian customers through a simplified registration andĬollection system. Taxing sales of electronic services made by foreign (non-established) In particular, since 1 July 2011 Norway has been TEI's work with the European Commission was informed byĮxperience with other jurisdictions in which TEI members already comply With the new rules and for EU Member States to administer them. Worked extensively with the European Commission on guidance interpretingĪmendments to the law that will make it easier for businesses to comply Many of those rules will go into effect on 1 January 2015. Rules governing the VAT treatment of electronically delivered goods and Recently, the European Union ("EU") developed systems and Interpreting the legislation in a similar fashion, thereby facilitatingĬompliance, collection, and enforcement of the tax. This ensures that businesses and SARS are Should focus on practical implementation and clearly describe how the Guidance on VAT rule changes before their effective dates. TEI believes it is critical to maintain a dialogue betweenīusinesses and revenue authorities to ensure release of necessary Improving the tax system for the benefit of taxpayers and tax Include integrity, effectiveness and efficiency, and dedication to Of those rules, TEI espouses organizational values and goals that VAT developments around the world, including in South Africa. Working for those companies, and other businesses, constantly monitor Purchase of digital products and services on a global basis. Many of these companies are involved in the sale, distribution, and TEI members are accountants, lawyers,Īnd other corporate and business employees responsible for the taxĪffairs of their employers in an executive, administrative, or The tax affairs of over 3,000 of the leading companies across all The Institute's 7,000 professionals manage Professionals, TEI is the preeminent association of in-house tax
This letter identifies areas whereįurther guidance would assist businesses and SARS.įounded in 1944 to serve the professional needs of business tax Implementation of the rules, which will adversely affect businesses Significant uncertainty and complexity still surrounds the practical Of "electronic services" and postponed the implementation of The scope of the digital products and services covered by the definition Regulations R.221 published on 28 March 2014. The "Institute") welcomes the publication of regulations andīinding General Rulings and, in particular, the Electronic Services Present challenges for both businesses and the South African Revenue Significantly change the current treatment of these supplies and will Section 1(1) of the Value-Added Tax Act 1991 (act No. De Jong, TEI TaxĬounsel, coordinated the preparation of TEI's letter.Īmendments to the definition of "electronic services" in and LynneĬlare of Sony Corporate Services Europe Ltd. TEI's comments were Julien Brugere of Time Warner Inc. Materially contributing to the development of Indirect Tax Committee, whose chair is Jean-Francois Turgeon ofĬaterpillar SARL. The letter was prepared under the aegis of TEI's European Guidance or amendments to the rules would assist businesses and SARS. The letter identified several areas where further Service (SARS) addressing new rules affecting foreign-based supplies ofĮlectronic services. On July 14, TEI submitted a letter to the South African Revenue APA style: TEI comments on South African VAT registration requirements.TEI comments on South African VAT registration requirements." Retrieved from
MLA style: "TEI comments on South African VAT registration requirements." The Free Library.