Effective from 5 January 2023, Section 23(1A) of the VAT Act was amended to ease the administrative burden for a foreign supplier of electronic services and a foreign intermediary (an intermediary who is not a resident of the Republic), by introducing an exception when calculating the R1 million threshold.
This exception applies where the said value of taxable supplies made has exceeded R1 million, in a consecutive period of 12 months, solely because of abnormal circumstances of a temporary nature.
In such instances, there is no requirement for a Foreign Supplier of electronic services or a Foreign Intermediary to register for South African VAT.
You can read more in the SARS guide document here.
