Kirfew wrote:
Hey guys, does anyone know whether a band would have to charge and register for VAT on digital sales of music through Bandcamp and PayPal?
Briefly, it can be more complicated.
Does you band has an income tax number ? In principal and according to the law yes. One must always charge VAT but this would only apply on an invoice. Are you sending invoices ? You should.
Are you or the band registered for VAT ? (even if your turnover is less than ZAR 1M you should register for VAT as you are in export business)
If you "export" the music you sell VAT could be charged at 0% a few requirements have to be in place for this. (you should have all details of the person/company/institution etc you are selling to including their VAT number registration number and etc. You require this to proof that they are outside SA (to qualify for 0% VAT charge. SARS can ask you for VAT payment an the sales you did if you do not have proof of this)
If "foreigners come and collect you music at your local SA place you must charge 14% VAT on the invoice, the customer must pay you the VAT which they will reclaim at the border post when leaving the country. You or the band must be VAT registered so you can pay and claim the VAT to/from SARS.
