Plans to change VAT on e-commerce transactions in South Africa

[Daniel Puchert]

Tax change for online shopping planned in South Africa

The government is planning many changes to VAT, including expanding the zero-rated food basket, changing VAT on e-commerce transactions, and narrowing the period for VAT claims.

Mmamoloko Kubayi, head of the ANC’s economic transformation subcommittee, reiterated the government’s plan to expand the zero-rated Value-Added Tax (VAT) food basket.

 

[ProfA]

Dstv of journalism. This exact same twaddle has been posted here before.

 

[FiestaST]

This article was first published by Daily Investor and is reproduced with permission.

lol

 

[now05ster]

lol

What if permission does not get granted?

 

[Willie Trombone]

So no changes then.

 

[system32]

These changes to increase tax (aka theft) everything to do with the R22b SARS collection shortfall.

SARS missing R22 billion in revenue
See https://businesstech.co.za/news/business-opinion/798038/edward-kieswetters-missing-r22-billion/
Makes for interesting read.

• Diesel levies are lower (due to Solar causing Eskom to burn less diesel) and that has given SARS a R8.4 billion dent in lost diesel taxes.
• Decreased overall imports resulted in less import VAT and customs tax
• Less PAYE bracket creap as people only got 5.4% increase vs 8.4% expected (who get 8.4% increase?)

Worth a read.
Sounds like SARS is in a hole and blaming taxpayers for getting Solar and not getting increases and not able to afford to import stuff.

Looking forward to other countries (China, US, EU, etc) implementing reciprocal 20% (45%) + VAT on ZA exports.
Could backfire big time on SARS.

 

[Bliksis]

Yeah nope, I came here to say I didn't even read this cotch.

 

[Swa]

These changes to increase tax (aka theft) everything to do with the R22b SARS collection shortfall.

SARS missing R22 billion in revenue
See https://businesstech.co.za/news/business-opinion/798038/edward-kieswetters-missing-r22-billion/
Makes for interesting read.

• Diesel levies are lower (due to Solar causing Eskom to burn less diesel) and that has given SARS a R8.4 billion dent in lost diesel taxes.
• Decreased overall imports resulted in less import VAT and customs tax
• Less PAYE bracket creap as people only got 5.4% increase vs 8.4% expected (who get 8.4% increase?)

Worth a read.
Sounds like SARS is in a hole and blaming taxpayers for getting Solar and not getting increases and not able to afford to import stuff.

Looking forward to other countries (China, US, EU, etc) implementing reciprocal 20% (45%) + VAT on ZA exports.
Could backfire big time on SARS.

Levies on diesel for non-road use can be claimed back, if paid at retail level so no difference there.

 

[system32]

Levies on diesel for non-road use can be claimed back, if paid at retail level so no difference there.

VAT

 

[Swa]

VAT

Can also be claimed back as a registered VAT collecting entity.

 

[system32]

Can also be claimed back as a registered VAT collecting entity.

“The good news is Eskom is performing better. A lot of rooftop solar has replaced a lot of the traditional, diesel generators, which has also meant there is 11% decline in the year-on-year diesel usage, about 1.33 million fewer litres of diesel.”

“And that’s good news because obviously it means we have more reliable electricity. But the bad news is that we’re using less diesel.”

“Therefore, diesel levies are lower– and that has given us a R8.4 billion dent.”

You welcome to discuss your doubt of the R8.4 billion SARS revenue dent due to less use of diesel cause by Solar with Kirsten Minnaar who wrote the businesstech article I just paraphrased the businesstech article.
See https://businesstech.co.za/news/business-opinion/798038/edward-kieswetters-missing-r22-billion/

 

[Swa]

You welcome to discuss your doubt of the R8.4 billion SARS revenue dent due to less use of diesel cause by Solar with Kirsten Minnaar who wrote the businesstech article I just paraphrased the businesstech article.
See https://businesstech.co.za/news/business-opinion/798038/edward-kieswetters-missing-r22-billion/

I'm not sure what's referred to as these are claimable levies. It would not apply in the first place if Eskom changed to wholesale. SARS would in any case not be missing out on a whole R8.4 bn. There is however a dent in electricity sales which attract VAT.

 

[system32]

I'm not sure what's referred to as these are claimable levies. It would not apply in the first place if Eskom changed to wholesale. SARS would in any case not be missing out on a whole R8.4 bn. There is however a dent in electricity sales which attract VAT.

I think SARS makes more tax/duties/levies from diesel than from coal - that difference resulted in R8.4bn less for SARS.
Eskom was burning mega liters of diesel during load shedding.

Also strange that Eskom was charged retail + premium for diesel from PetroSA as apposed to bulk purchase discount.
see https://www.news24.com/fin24/econom...y-exorbitant-diesel-costs-to-petrosa-20230202

 

[Swa]

I think SARS makes more tax/duties/levies from diesel than from coal - that difference resulted in R8.4bn less for SARS.
Eskom was burning mega liters of diesel during load shedding.

Also strange that Eskom was charged retail + premium for diesel from PetroSA as apposed to bulk purchase discount.
see https://www.news24.com/fin24/econom...y-exorbitant-diesel-costs-to-petrosa-20230202

So how would that happen? RAF and road levy are claimable expenses as per regulations. Carbon tax still makes up an insignificant amount. VAT is claimable by all registered VAT vendors. The article doesn't add up.