As of 1 April 2019, Amazon Web Services, Inc. (“AWS Inc.”) is required to charge Value Added Tax (“VAT”) on sales of electronic services to all customers, non-business (“B2C”) and business (“B2B”), in South Africa.
Prior to this date, customers may have been required to self-assess the VAT due in their local tax return.
Starting November 1, 2020, Amazon Web Services South Africa (Pty) Ltd (“AWS South Africa”), has replaced Amazon Web Services, Inc. (AWS, Inc.) as the AWS services provider for all accounts located in South Africa using the credit card payment methods, and starting August 1, 2020 for all accounts located in South Africa using the invoicing payment method.
If you have accounts located in South Africa, AWS Inc. charges local VAT on all service charges incurred from 1 August 2020 for accounts using invoicing payment method and from 1 November 2020 from customers using credit card payment method. All VAT collected from customers in South Africa will be paid to the South African Revenue Service (“SARS”).
If you are a B2B customer and have a Tax Registration Number (“TRN”) (also known as VAT Registration Number or VAT ID), please visit the Tax Settings page of the AWS Billing Console and confirm or update your details, including your Business Legal Address for all of your account(s). This will ensure that your TRN is displayed on the AWS Inc. VAT invoice to enable you to claim a credit for VAT charged.
For additional information on TRN, please click here.
How does AWS determine if your account is located in South Africa?
At the moment of invoicing, AWS determines the location of each individual account, based on certain information, including your TRN, your Billing address and your Contact address. The result of AWS’ determination is shown as the “Tax Address” on the Tax Settings page of each account.
If you have a consolidated billing family, please note that each account is assessed individually: linked accounts do not inherit the Tax Address or TRN of the payer account. The payer account can view the Tax Address of all their linked accounts on their own Tax Settings page.
Please click here for additional information.
For additional information on the application of VAT in South Africa, please visit the website of the South African Revenue Service: http://www.sars.gov.za/TaxTypes/VAT/Pages/default.aspx