first of all, a warm (weather related cold...) Hello to everyone from Germany.
Iīm having an issue to get the right Information regarding a VAT matter. Ok, itīs a bit usual case, but nevertheless an expert should be able to answer. You canīt Imagine whom Iīve already asked... inconsistent answers
Maybe you guys may help me to get the needed answers.
We are small Company from Germany who is having the copyrights for many German Video and Audio tracks, this includes also the southern African region. Our Company is situated in Germany and we have no plans to open up an affiliate in South Africa, even we are looking forward to accept end customers from South Africa.
What we plan to do is the following. A potential client/end user from South Africa can register via our website and purchase a subscription for 3, 12 or 24 month and consume the product in South Africa via his end user device.
So far it sounds simple. The question is, are we obliged to charge the South African VAT from this end user as German company with no registration in South Africa, and how should we pass through the collected VAT to SARS?
In case we donīt charge the VAT from our end user, are we acting illegal? What impact is to expect?
What is your pragmatic advise we should do?
I hope you can help e in this matter.