VAT on digital goods and services in SA from April: Treasury

Petec

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Mar 22, 2012
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2,617
I don't understand why they would target education as one of the areas that this tax apply to.

Because the wANCers want to push this country firmly back to the stone ages. Educated people don't vote for them you see :)
 

Sonic2k

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Feb 7, 2011
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Yet another "brilliant idea" from that fool Gordhan.
The same one who gave his "brilliant ideas" about unemployment.
Just watch how this man will eventually tax us all into another light year.

Time to do the overseas bank account thing.
 

Sonic2k

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Because the wANCers want to push this country firmly back to the stone ages. Educated people don't vote for them you see :)
Perfectly in line with keeping the masses dumb, because dumb people are easy to get votes from.. give them a t-shirt and free food every 5 years and you'll be in power forever.
 

Necuno

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Perfectly in line with keeping the masses dumb, because dumb people are easy to get votes from.. give them a t-shirt and free food every 5 years and you'll be in power forever.

Soos pap-n-wors.
 

Sonic2k

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So question time:
This applies to services you pay money for? Or do they now want to make you pay VAT for free stuff?
This IMHO is the beginning of a slippery slope where you pay tax to use the internet.. in which case there is really no point in living in this country anymore. Then I may as well move to Zimbabwe, because there, this **** doesn't exist
 

TJ99

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So question time:
This applies to services you pay money for? Or do they now want to make you pay VAT for free stuff?
This IMHO is the beginning of a slippery slope where you pay tax to use the internet.. in which case there is really no point in living in this country anymore. Then I may as well move to Zimbabwe, because there, this **** doesn't exist

VAT is a percentage of the amount paid for goods or services, 14% in SA. 14% of 0 is 0, so no, you can't pay VAT on free stuff.

We already pay tax to use the Internet. You pay VAT on your ISP and Telkom bill. Which is fine, they are South African companies providing a service in South Africa.
 

Murmaider

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Jan 16, 2008
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And how are they going to force companies outside of SA to do this?

I don't think they need too, they only need to enforce it with Visa / Mastercard or the local banks to apply 14% to the converted transaction fee if the transaction is taking place on a foreign gateway.
 

Sonic2k

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Time for Bitcoin and that offshore bank account.. the latter is easy for me to set up since I hold dual citizenship
 

Yuu

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Apr 3, 2006
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Is there any way we can STOP this from going forward? Since we are allowed public comment, can we not use the power of the internet (big sites like Lifehacker etc) and ask for their comment too (template they can submit)? :)

This should not be allowed to happen and i cannot sit here typing this comment and do nothing in the coming months.
 

Paul Hjul

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Aug 31, 2006
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Is there any way we can STOP this from going forward? Since we are allowed public comment, can we not use the power of the internet (big sites like Lifehacker etc) and ask for their comment too (template they can submit)? :)

This should not be allowed to happen and i cannot sit here typing this comment and do nothing in the coming months.
There are opportunities for public comment. I've had a look at the draft and am horribly disappointed in the quality of the draft - regardless of the underlying issues. There is a gaping hole in the entire thing which I need to query.

Unless somebody beats me to it a thread in the Consumerism Category is a good thing. Unfortunately my energy is a little stretched at the moment
 

DJ...

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Jan 24, 2007
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Stop bitching and get to work, Paul. You have an eternity of sleep ahead of you...:p
 

DJ...

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Slight correction: tax is something for the TAX people to deal with.

I swear they encourage complex legislation for their own benefit.

/tin-foil hat time...
 

Paul Hjul

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Slight correction: tax is something for the TAX people to deal with.

I swear they encourage complex legislation for their own benefit.

/tin-foil hat time...
There is more than a slight element of truth to that
But I think an additional complication comes in the fact that often in the process of trying to create clarity and accommodating competing demands you just have forests being destroyed
 

Paul Hjul

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Or they think wood is something for a golf course

but veering off topic

ja it looks like my glimmer of optimism is not justified. The regulations are abundantly useless and appear really just to be a pretext to protectionism and an "easy" revenue source
 

SauRoNZA

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Jul 6, 2010
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A company taking money in Rands, locally, will probably be registered as a VAT Vendor (iTunes, Google Apps, XBOX, PlayStation Network, etc) and they will charge you the VAT and then pay it over to SARS.

You are saying exactly what I'm saying.

I see this only applying to foreign companies dealing product inside South African in RANDS.

Anything directly purchased from the US/UK/Other digital source will not apply.
 
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