International commerce has become an everyday reality. Buying from or selling to a person in another country, especially online, is almost as common as walking to the local supermarket and buying bread. Many of you have downloaded a book on your e-book reader or have bought something on Amazon to have it delivered to your doorstep. I have written many times on this subject as I am quite passionate about this global village that we live in and the adjustments that we as participants in the business world (more so as accountants and tax practitioners) have to make to stay relevant. Our firm is very excited about and proud of the investments we are making in our IT structures in this regard: we are adding comprehensive cloud accounting solutions to our current service offering and driving innovative service delivery to our clients by using these platforms. This has the benefit that clients can access their business data wherever they are in the world at any time, as long as they have access to the internet. It also makes cross-border commerce easier to deal with. We will liaise directly with clients, but please contact us should you have any interest or queries.
Resulting from this is of course a myriad of tax and accounting issues that have to be considered and addressed. We include a comprehensive article this month on VAT export issues relating to online commerce which we hope will provide some clarity. However it is clear that revenue authorities will also have to adapt in this regard.
On the B-BBEE front the following was decided and reported via the Government Communication and Information System at the Cabinet meeting of 1 November 2017, regarding certain B-BBEE Sector Codes:
“Cabinet supported the proposed amendments of the three B-BBEE Sector Codes. The amendments address sector challenges and peculiarities on transformation that would otherwise not be addressed fully by the generic codes. The three sectors are in Agriculture, Finance and Construction. The proposed amendments have been canvassed with the relevant stakeholders. All the amended sector codes will be gazetted.”
This clears the way for the sector code for Agriculture, Finance and Construction to be gazetted, which will probably have the implication that these codes will be effective immediately. We will keep you updated of any further developments and liaise with our affected clients.
We hope that you find our newsletters interesting and informative. As always, if you want to respond to or comment on any of our news items or other relevant information, please contact us at firstname.lastname@example.org or 022 – 482 1169, or join the conversation on our social media platforms on Linkedin and Facebook.
Warm regards until next month.