This is correct – I have seen the SARS doc that states this precisely! See page 16 of the Annexure at the back. Doc is dated 27th November 2015. This doc’s annexure was not on the previous 2011 version of the same doc.
I sincerely hope you had a signed contract, outlining rates and conditions of payment with the provider. I strongly suggest that you name and shame this provider. As private providers, we simply cannot afford to entertain these unscrupulous providers, who give us a bad name. Root out the rot.