New SA "Netflix tax" proposed

[backstreetboy]

But you're forgetting the new VPN tax, you'll then have to pay.

Lifetime VPN ftw! Mine is paid for two years ago already.

 

[Mike Hoxbig]

Either Netflix, FB and Amazon will pull all services from South Africa or they will increase the price so much that it won't be viable for us anymore.

If FB pulls out, not a big loss as it's garbage in any case. But Netflix and Amazon might be a bit sucky, so I'll just dust off my old trusty VPN.

They won't, there's numerous countries looking at doing this.

And to be fair, the nature of digital services means they've been able to circumvent regulations that traditional companies are subjected to...

 

[KleinBoontjie]

Lifetime VPN ftw! Mine is paid for two years ago already.

Was actually jokingly referring to a fictional government tax on VPN. Hench the italic font.

 

[SeRpEnT]

/SNIP
If we had a none corrupt government this would be a no-brainer, /SNIP

Eish, you're in a hurry to tax the internet. The fact that 99.9% of countries of the world has not done so yet and are taking a wait and see attitude on this means its anything but a no-brainer. What percentage? Which internet companies do you tax? How would you define services? Etc etc.

 

[SeRpEnT]

nonsense, everybody knows our ANC Crazies will introduce a Toaster license,
you will need to pay money every month and there will be inspections on the size and quality of toasters

if you get a fancy Russell Hobbs toaster you will pay more,

And if you have a Smeg you are royally farked.

 

[Jet-Fighter7700]

And if you have a Smeg you are royally farked.

not to mention something imported from overseas connected to the internet.
you might as well set up a beneficiary to tito himself,

 

[SeRpEnT]

Daily reminder that Netflix contributes more to the fiscus than the SABC.

Netflix? It's VAT. The subscribers are paying the tax. Netflix are just collecting and paying it over.

Edit: Actually at the moment Netflix are absorbing the VAT as they never hiked their price since VAT on Netflix came into effect. So yes then you are right ...until such time that they do hike their price and work the VAT into it.

 

[backstreetboy]

Was actually jokingly referring to a fictional government tax on VPN. Hench the italic font.

Lol we need comic sans back.

 

[acidrain]

Putting feelings towards Government aside, is it such a bad thing to impose a tax that ensures international companies contribute to the economy of the country from which they are benefiting?

We are not the first to have done this but only one of the slowest out the gate. Just googling this "Netflix Tax" shows this is not new around the world. https://theconversation.com/the-netflix-tax-coming-to-a-country-near-you-40475

The only question is will Netflix accept they have a responsibility or simple make government the bad guy by increasing prices because hey "We don't make enough money".

 

[Jet-Fighter7700]

Putting feelings towards Government aside, is it such a bad thing to impose a tax that ensures international companies contribute to the economy of the country from which they are benefiting?

We are not the first to have done this but only one of the slowest out the gate. Just googling this "Netflix Tax" shows this is not new around the world. https://theconversation.com/the-netflix-tax-coming-to-a-country-near-you-40475

The only question is will Netflix accept they have a responsibility or simple make government the bad guy by increasing prices because hey "We don't make enough money".

we already pay VAT, so why another tax, makes zero sense,
but we know why? its to buy the New BMW's for our useless politicians

all that this will do, is cause people to go back to piracy and other "illegal" services like VPN's.
and who does that benefit? nobody.

so shooting yourself in both feet I think they will do with a "netflix" tax.

 

[quovadis]

So the 15% VAT is not enough? lol.

The French digital tax only applies if the company has revenues exceeding 25 million euros in France (+-R475 million) and have revenue in excess of 750 million euros globally (+-R14 billion) worldwide. Both conditions are required for the DST to be imposed @ 3%. That's not unreasonable. Unfortunately in ZA we'll probably just demand 25% regardless of anything...

 

[SeRpEnT]

Putting feelings towards Government aside, is it such a bad thing to impose a tax that ensures international companies contribute to the economy of the country from which they are benefiting?

We are not the first to have done this but only one of the slowest out the gate. Just googling this "Netflix Tax" shows this is not new around the world. https://theconversation.com/the-netflix-tax-coming-to-a-country-near-you-40475

The only question is will Netflix accept they have a responsibility or simple make government the bad guy by increasing prices because hey "We don't make enough money".

Yeah, on the other hand government also claims "We don't make enough money." Hence this #@Q$ tax.

Don't forget that all the internet companies that are now in line to be taxed by Ramapokker and friends are already taxed on their income in their own country. It's not like these are crooks not getting taxed.
So what Ramapokker , or the Unions, should do is write to Trump and ask them to return the SA portion of US tech firms taxes that apply to their services to South Africans... lol.

 

[acidrain]

we already pay VAT, so why another tax, makes zero sense,
but we know why? its to buy the New BMW's for our useless politicians

all that this will do, is cause people to go back to piracy and other "illegal" services like VPN's.
and who does that benefit? nobody.

so shooting yourself in both feet I think they will do with a "netflix" tax.

I see there's an article from 2018 where they state they pay VAT, but my online invoices don't reflect that. I believe Steam also went through the same thing, where they implied VAT was included, but later started including it into the invoices.

My whole thing is that this "Netflix Tax" has been in the works since 2018. If Netflix was indeed paying their dues, why after 2 years is this cropping up again. I'm no fan of this government, but I am also not trusting of large corporates either.

Adobe for one was one that wasn't paying VAT and the invoices reflected that until February of this year. Now their invoices show vat applied.

 

[Jet-Fighter7700]

I see there's an article from 2018 where they state they pay VAT, but my online invoices don't reflect that. I believe Steam also went through the same thing, where they implied VAT was included, but later started including it into the invoices.

My whole thing is that this "Netflix Tax" has been in the works since 2018. If Netflix was indeed paying their dues, why after 2 years is this cropping up again. I'm no fan of this government, but I am also not trusting of large corporates either.

Adobe for one was one that wasn't paying VAT and the invoices reflected that until February of this year. Now their invoices show vat applied.

you do raise a good point,
depends who you trust, our Crazies or some multinational that doesn't even pay tax in its home market.

 

[acidrain]

I stand to be corrected. Asked some friends if their invoices show vat and they do. Mine is still billed in USD but doesn't state any vat, so kind of strange.

Guess those leaning towards a nefarious government are more correct than myself.

 

[tjma2001]

At least bitcoin isn’t taxed.......... yet

 

[Datura]

View attachment 940948

Looks like her hair is slightly damaged. Clicks have a product for that... apparently...

 

[SilverCode]

So the "Reasons for a digital tax" is because

1. They want more money
2. Other people are doing it

That doesn't explain why Netflix/Amazon et al should actually pay the tax. It is just a case of taxing them for the sake of taxing them. They aren't using public, physical SA infrastructure to deliver their product so what exactly is that tax "paying for"?

 

[elf_lord_ZC5]

Well to tax something, you need to determine value, then costs and losses, then profits which you can tax. The service Netflix delivers is intangible.

Further Netflix does not have an office here, nor a bank account, nor a representative.

So good luck determining what the profits are that you are entitled to tax.

Face book is even more difficult.

The clever dweebs in this country are truly awesome.

 

[Ashez7]

Look out for those blackfriday lifetime VPNs !