In a Government Gazette of 28 March 2014 a 5-page notice appeared in respect of regulations prescribing electronic services for the purpose of the definition of "Electronic Services" in section 1 of the Value-added Tax Act, 1991.
According to an article in Business Day, 31 March 2014, National Treasury said that the registration process for foreign suppliers of electronic services would start on 07 April 2014, but the changes would come into effect only from 01 June 2014. The regulations would be known as the Electronic Service Regulations.
The regulations apply to any supply of electronic services in the course or furtherance of an enterprise carried out by a person from a place in an export country to a recipient that is resident in South Africa or where any payment to that person in respect of such electronic services originates from a bank registered or authorised in terms of the Banks Act, 1990. The services are all-encompassing, referencing educational services, games and games of chance, internet-based auction services, miscellaneous services that can include e-book, audio visual content, photographic and other images, and music.