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The Government Notice says:
REGULATIONS PRESCRIBING ELECTRONIC SERVICES FOR THE PURPOSE
OF THE DEFINITION OF “ELECTRONIC SERVICES” IN SECTION 1 OF THE
VALUE-ADDED TAX ACT, 1991
...by virtue of the definition of
“electronic services” in section 1(1) of the Value-Added Tax Act, 1991 (Act No. 89 of
1991), hereby make the regulation set out in the Schedule hereto.
http://www.treasury.gov.za/public comments/E-services Regulation.pdf
Where is this "electronic services" mentioned in Section 1 or 1(1) ?
Atlassian was asked whether their invoices would be in Rand or US Dollar, how collected VAT will be paid to National Treasury, and why they bothered complying with South African tax laws rather than cut us off.
A spokesperson for the company said that they “respectfully decline to comment on this topic.”
This brings about the obvious question, HTF does SARS even think they'll be able to enforce this :wtf:So your digital subscriptions (such as Amazon book purchases) will now also include VAT. Same applies if you are a seller on eBay. If you are running IT, you will pay VAT for Goole Apps, DNS, Cloudflare, hosted services such as Sendgrid, AWS/S3, Application monitoring and so on.
Atlassian has so far only commented with a non-sensical reply and is the only company I have dealt with where we received that type of communication. Others (I can not mention names - but some have big footprints overseas) have told me that they don't know about it and don't really care unless there are strict guidelines.
Perhaps I should have been more clear. How would SARS know that you've bought something from Amazon.com, while you were "in" South Africa when you clicked the "buy" button? Remember, they cannot claim VAT for purchases made from another country. That's what I tried to point out really.If they fail to pay the tax they owe, arrest warrants could be issued. And they could be extradited. But I speak under correction
Perhaps I should have been more clear. How would SARS know that you've bought something from Amazon.com, while you were "in" South Africa when you clicked the "buy" button? Remember, they cannot claim VAT for purchases made from another country. That's what I tried to point out really.
Its going to take an extraordinary effort on their part.
I think they will just associate your billing country/credit card originating country to South Africa and then apply VAT. I doubt that neither Amazon, Apple or Google will comply with this - they make the whole EU already run in circles about their tax avoidance.
There is an amendment to the Act on a Bill before Parliament. Not sure right now how far that has moved but the best of my knowledge there is a bit of a jump on the gun that could give rise to an illegality.One of the clever lawyers still has to explain how this Regulation has anything to do with the Act.
Where in the Act is the term "electronic services" mentioned? Or was the Act amended too?