Page 530 - Juta's Indirect Tax

BGR 028 VALUE-ADDED TAX ACT: BinDing gEnErAL rULingS BGR 028
• exchange rate that must be applied in order to determine the amount of the VAT charged in the currency of the Republic; and
• manner in which prices must be advertised or quoted,
for the supply of electronic services by an electronic servicessupplier.
2. Ruling
This ruling constitutes a BGR insofar as it relates to the items listed in 2.1 to2.4.
2.1 Tax invoices
The Commissioner directs under section 20(7)(a), that an electronic services supplier must issue a tax invoice for a supply of electronic services containing, as a minimum, the following information:
(a) The name and VAT registration number of the electronic services supplier.
(b) The name and address of the electronic services recipient.
(c) An individual serialised number.
(d) The date on which the tax invoice is issued.
(e) A description of the electronic services supplied.
(f) The consideration in money for the supply in the currency of any country. If the consideration is re ected in the
currency of –
(i) the Republic, 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 the Republic, the amount of the tax charged in the currency of the Republic or a separate
document issued by the electronic services supplier to the electronic services recipient re ecting the amount of
the tax charged in the currency of the Republic. (g) The exchange rate used.
The tax invoice(s) containing the aforementioned information satis es the requirements of section 16(2)(b)(ii).
2.2 Credit and debit notes
The Commissioner directs under section 21(5), that a vendor that –
(a) has issued a tax invoice as contemplated in 2.1; and
(b) is required to issue a credit or debit note as required by section 21(3), and is unable to issue a credit or debit note
that complies with section 21(3); must issue a credit or debit note containing the following information: (i) The name and VAT registration number of the electronic services supplier.
(ii) The name and address of the electronic services recipient.
(iii) The date the credit or debit note is issued.
(iv) A brief explanation of the circumstances giving rise to the issuing of the credit or debit note.
(v) The increased or decreased consideration together with the increased or decreased amount of tax, as the case may be. If the consideration is re ected in the currency of –
(aa) the Republic, the increased or decreased amount of the VAT or a statement that the consideration includes
the increased or decreased amount of VAT and the rate at which the VAT was charged; or
(bb) any country other than the Republic, the increased or decreased amount of tax in the currency of the Republic or a separate document issued by the electronic services supplier to the electronic services
recipient re ecting the increased or decreased amount of tax in the currency of the Republic.
(vi) The exchange rate used, being the exchange rate used in the tax invoice issued as contemplated in 2.1.
2.3 Value of supply
A vendor issuing a tax invoice contemplated in 2.1 or a credit or debit note contemplated in 2.2 re ecting the consideration in money in the currency of any country other than the Republic must convert the tax charged to the currency of the Republic. In this regard, the exchange rate that must be applied in order to determine the tax charged in the currency of the Republic, is the rate published by–
• South African Reserve Bank;*
• Bloomberg;† or
• European Central Bank.‡
The applicable exchange rate is the rate on the date the time of supply occurs or the monthly average rate for the month during which the time of supply occurs.
2.4 Advertised or quoted prices
(a) The Commissioner, for the period 1 June 2014 until 31 March 2015, makes an arrangement under section 72 allowing an electronic services supplier to advertise or quote the price of its electronic services exclusive of VAT on condition that it has a statement on its website indicating that supplies of electronic services to electronic services recipients will be levied with VAT.
(b) An electronic services supplier may, on or after 1 April 2015, advertise or quote the price of its electronic services exclusive of VAT on condition that it has a statement on its website indicating that VAT will be levied on supplies of electronic services to electronic services recipients.
* www.resbank.co.za/Research/Rates/Pages/SelectedHistoricalExchangeAndInterestRates.aspx. † www.bloomberg.com/markets/currencies/cross-rates.
‡ www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html.
522 Juta’s IndIrect tax 2016