Abstract
The taxation of cross-border telecommunication services within the Value-Added Tax (VAT) framework has long been a subject of international concern, primarily due to the complexities inherent in determining the place of supply and consumption. In the South African context, the most recent accredited academic contribution is that of Schoeman et al. (2015); however, their analysis was centred on the Melbourne Agreement and was limited to international mobile roaming. Since then, notable developments have taken place, including South Africa's signing of the Dubai International Telecommunication Regulations (ITR) and the introduction of section 11(2)(y) into the VAT Act. This study, guided by two research questions, investigates these developments and their implications for the VAT treatment of cross-border telecommunication services. Employing a qualitative doctrinal methodology, the analysis draws on relevant legislation, international instruments, and academic literature to evaluate changes in legal interpretation and policy implementation. Two principal findings emerge: first, section 11(2)(y) confines zero-rating to services exchanged between registered telecommunication providers, thereby excluding services supplied directly to end-users, such as those involving eSIM technology. Second, uncertainty remains regarding a discrepancy identified by Schoeman et al., specifically that South African service providers apply VAT at the standard rate to international roaming services consumed by residents abroad, despite a strict interpretation of section 11(2)(k) suggesting that these services should be zero-rated. Future research recommendations include a comparative international analysis to investigate how other Dubai ITR signatories approach the VAT treatment of cross-border telecommunication services, as well as an examination of the VAT implications when such services are supplied directly from providers to end-users.