Email Us
info@ers.org.sz

Contact Centre
(+268) 2406 4050



All FAQs   80

YES. Rentals of buildings for commercial purposes are taxable at the standard rate of 15%.

Importation of machinery will be charged VAT at importation. If the importation is done by a VAT registered person the VAT charged at importation can be claimed as input tax. If the importation is done by a non-registered person it will be a cost. The same applies when sourced locally.

The importation or local acquisition of livestock is taxable. Any supply of livestock by a local person who is registered for VAT is taxable at the rate of 15%

Where the Swaziland based registered business supplies goods, and the foreign buyer consigns the goods from Swaziland; the supply must be standard rated (or zero-rated if covered by the Second Schedule of the VAT Act).

Direct exports are transactions whereby the Eswatini based supplier is responsible for consigning or delivering the goods at an address outside of the country.  This must be evidenced by documentary proof of export.

Direct exports are zero-rated; indirect exports on the other hand are standard-rated (or zero-rated if covered by the Second Schedule of the VAT Act.)

For VAT, all travelers (whether arriving from SACU or elsewhere) are entitled to a relief for new or used goods imported for their own personal use or consumption (i.e. not for resale) of up to E1 000 per person.

There are no current plans to enter into a MoU with Mozambique. The public will be notified should there be any developments in this regard.

No. VAT incurred outside Eswatini is governed by a jurisdication outside of the country.

Yes. The import of goods by any person into Eswatini is taxable at the applicable rate. It is irrelevant whether or not you have incurred VAT in the country of origin. However, through Sekulula VAT Easy, the VAT incurred in the Republic of South Africa (excluding VAT incurred on Motor vehicles) may be used to settle import VAT on the Swazi side if the Tax Invoice valid. Sekulula VAT Easy requirements can be accessed from our Website under Customs and Excise.

Section 28 and 51 of the VAT Act refers. Taxpayers must keep accounts and records for at least 5 years. Businesses have up to 5 years to claim input tax credit; the ERS can also make an assessment going back as far as 5 years in respect of output tax.

Input tax cannot be claimed in the absence of a tax invoice and if the purchase will not be used for making taxable supplies. A business will have to insist on a tax invoice from its suppliers if it is dealing with a taxable person.

Business making an annual taxable turnover of over E20million and those admitted into the import VAT deferred payment scheme are required to return monthly, all other registered businesses not falling under the above mentioned categories return quarterly and all businesses that are under the VAT Reverse charge mechanism submit returns annually. These taxpayers are informed by the ERS when being admitted to this mechanism. 

The Commissioner General may formally change a quarterly filer to being a monthly filer. 

A VAT return must be accompanied by a VAT schedule at all times wether it is a payable or a refund. The VAT schedule is available on our website under VAT Forms. VAT registered businesses must keep all documentation that authenticates their returns for a period of no less than 5 years after the end of the tax period to which they relate for inspection and auditing as and when the ERS may deem necessary.

For NGOs, the following documents must be availaved:

  • MoU between government and NGO
  • Letter of exemption
  • Copies of tax invoices (and original for verification)

For Diplomats and Consular:

  • Diplomatic ID
  • Copies of tax invoices (and original for verification)

No they do not as they are a cost to different taxpayers. Reverse charge is VAT that is incurred by the local importer of a service and must be charged in addition to the cost charged by the foriegn service provider. Reverse charge is only a mechanism that places responsibility on the local business to withhold and remit the VAT due to the SRA. E.g. if Swazi business ABC contracts South African business XYZ to provide services at E100,000; ABC will be obliged to calculate 15% VAT on that invoice, being E15,000 and remit this amouunt to ERS as a cost to them. So in principle, the services being provided by XYZ will cost ABC E15,000 in total.

Withholding tax on the other hand is a cost to the foreign service provider, being tax from having generated income in Swaziland. The Swazi business ABC is obligated to withhold this amount at the applicable rate and remit to the ERS, failure of which will render ABC liable. So if XYZ quotes E100,000 it needs to be clear to them that they will only receive E85,000 which is less the 15% applicable rate or in the case of application of the Double Taxation rate which is 10%, they will receive E90,000.

In conclusion, a total of E30,000 will be remitted to the ERS although it would have been a cost to two different participants in the engagement contract.

Both the TINs of the buyer and the supplier on tax invoices enables ERS to verify the authenticity of input tax claims by crosschecking transactions between the businesses. This is also a specification by Law of what information a Tax Invoice must have to be considered valid. 

Registered businesses MUST display the VAT certificate in a prominent place on the business’s premises. The names and TINs of registered businesses are publicized on the ERS website. Such information is accessible to the general public (click here to search database); the public may also contact the ERS in case there is suspicion of unauthorized charging of VAT by a business.

Yes, since each enterprise or division is treated as a taxable person in its own right.

Yes. A taxable person who conducts  several enterprises or operates  an enterprise in separate divisions or branches may register each enterprise, division or branch  separately if each one:

  • Maintains independent accounting records; and
  • Can be separately identified in terms of the type of activities carried on.

In such a case, the person must complete a separate application form for each branch, enterprise or division. Once registered, each enterprise branch or division is considered a separate taxable person and will get its own Taxpayers Identification Number (TIN).

Yes. If an already registered business adds a new trade name, this information must also be updaed with the ERS. Failure to do so may result in penalties under both Income Tax and VAT. 

VIEW FORMS


  View all Application Forms

  View all Customs and Excise Forms

  View all VAT Forms

  View all Income Tax Forms

  View all Other Forms




PUBLICATIONS

 

    TAX CALENDAR   SEE ALL DATES

Provisional Tax:

1st payment is due no later than 31st December

2nd payment is due no later than 30th June

3rd payment is due on receipt of Notice of Assessment after having submitted Income Tax returns


Remittance of PAYE:

No later than the 7th every month


See All


© 2024 Eswatini Revenue Service. All rights reserved

Website Designed by Real Image Internet