New South African tax could see you paying more for Netflix and other internet services

[BusinessTech]

New South African tax could see you paying more for Netflix and other internet services

According to Baker & McKenzie, the impact of the amended regulation is that all services that are supplied from abroad by an 'electronic agent', 'electronic communication' or the 'internet' are now electronic services for the purposes of VAT.

 

[Craig_]

These d.cks really want to bleed us dry.

 

[MirageF1]

These d.cks really want to bleed us dry.

Have already.

 

[TelkomUseless]

#ProudlyANC taxing even more...
</surprised>

 

[Ianf1]

"Speaking to BusinessTech Seelan Moonsamy, a VAT expert at Baker & McKenzie, said that the regulations will likely lead to companies such as Netflix, Facebook and Google having to register for VAT. "
VAT is already charged by Netflix and Amazon find an expert who knows what he is talking about. Why let the facts get in the way of a good headline!

 

[Lew Skannen]

The way I understand this, is that services like Google, Facebook and Netflix do indeed charge VAT on services rendered, which means they are likely already registered for VAT and their prices will not be influenced. I do not think these companies have any other choice, as they have data centers, offices and/or other infrastructure located in South Africa, offering services to South Africans. It would make sense that they would be taxed and I think they are all compliant in any event.

 

[krycor]

The way I understand this, is that services like Google, Facebook and Netflix do indeed charge VAT on services rendered, which means they are likely already registered for VAT and their prices will not be influenced. I do not think these companies have any other choice, as they have data centers, offices and/or other infrastructure located in South Africa, offering services to South Africans. It would make sense that they would be taxed and I think they are all compliant in any event.

Also think we be having it already, I recall they announced this a while ago.

 

[RedViking]

Well it has already been don't to steam if I am not mistaken.