Google South Africa's tax mystery

Daruk

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“We pay all of the taxes due and comply with the tax laws in every country we operate in around the world,” Google told South Africa

Valid response. Fix your tax laws... or find better ways to tax.
 

Swa

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Tax laws weren't written for a global economy. Isn't that the same response that Netflix gave when asked if it paid VAT in SA? :unsure:
 

Frequent visitor

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All the large companies do all they can to minimise tax paid, from this sort of manipulation to adjusting the value of transactions for Customs and other duties. In this last case the international trade organisations introduced the concept of the price actually paid or payable instead of the value, so got what it deserved.
Profits are moved between international branches of companies by means of devices such as management charges.

Sweevo is quite right: change the tax laws to make it difficult. The companies will usually come up with some new idea to make new problems for the tax authorities, so it will be a never ending process. But that is why we have legal departments.
 

airborne

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How is Google taxed in Sa for things like physical Play store vouchers that can be bought at Checkers?
 

Arthur

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I don't know for sure as I've never paid a cent to Google, but I wouldn't be surprised if Google SA has zero sales and therefore has zero profits and thus pays zero SA income tax.

Who exactly do South Africans contract with when buying services? Is it a local or foreign entity?

All the large companies do all they can to minimise tax paid, from this sort of manipulation to adjusting the value of transactions for Customs and other duties.
Ja. As you probably know, there are no fees, duties or tariffs levied on software, services, or indeed even computers and computer parts.
 
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Mthiboz Onlife

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Honestly Google SA doesn't Make Money... It Google Ireland... Even Adsense Payment are written Google Ireland..
 

Praemon

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How is Google taxed in Sa for things like physical Play store vouchers that can be bought at Checkers?
Monetary vouchers don't attract VAT, however, VAT is charged when you use the voucher balance to purchase content on the Google Play store. You'll see the 15% VAT on Play store purchase receipts.

Income tax and VAT would be declared by the distributors and retailers on the commission they receive for selling the vouchers as well.

The eventual profit that Google makes and whether they declare it correctly is another story though.
 

Frequent visitor

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I don't know for sure as I've never paid a cent to Google, but I wouldn't be surprised if Google SA has zero sales and therefore has zero profits and thus pays zero SA income tax.

Who exactly do South Africans contract with when buying services? Is it a local or foreign entity?

Ja. As you probably know, there are no fees, duties or tariffs levied on software, services, or indeed even computers and computer parts.
But on other items also - due to manipulations of values.
 

Daruk

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Seems to me SARS is more interested in what they can make from Google rather than what Google brings to SA in terms of local jobs and income tax based revenue.
 

ArtyLoop

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Seems to me SARS is more interested in what they can make from Google rather than what Google brings to SA in terms of local jobs and income tax based revenue.
SARS is on a roll man, they want to take everything from everyone. Remember they are going in dry, the Gupta brothers took the lube
 

Daruk

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SARS is on a roll man, they want to take everything from everyone. Remember they are going in dry, the Gupta brothers took the lube
If there’s a reason for me to leave this place, that’ll be it. They have proven their inability to manage the money.
 

czb197

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Jan 24, 2013
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Google SA has just started charging VAT on my Google Ads account.

But the way they do it is a pain! Reverse Charge VAT

So I pay for the clicks, but then get a VAT bill afterward! So now my account is in debit with the VAT amount.

So my clients will have to up their Google Ads spending to get the same amount of clicks. This is ok for my VAT clients as they can claim the VAT back, but my non-VAT clients cannot.
 
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