Tax alert

Value Added Tax (Digital Marketplace Supply) Regulations, 2020

VAT on the digital marketplace was introduced by the Finance Act 2019, which amended the Value Added Tax Act No. 35 of 2013 (VAT Act) to tax supplies made through a digital market place.

The Act defines a digital market place to mean “a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means”.

The regulations came into effect following public consultations on the draft regulations that were released towards the end of May 2020. The regulations address key issues such as services that fall under the scope of digital market place, registration, consideration of place of supply, accounting and payment of tax etc.

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