National Treasury issued new electronic services regulations towards the end of March 2014 which required that 14% VAT be charged on all digital goods and services sold in South Africa.
Music albums that previously cost R69.90 now cost R79.90, while songs that cost R6.99 now cost R9.99.
One user also showed a screenshot of their checkout after buying a song where Apple now states, “This amount includes VAT at 14%”.
Movie rentals and purchases through iTunes also cost a bit more.
The table below summarises the price increases on Apple’s iTunes storefront due to the addition of 14% value added tax (VAT):
|iTunes item||Launch price||New price (June 2014)||Increase|
|Albums (may vary)||R69.90||R79.90||14%|
|New HD movie, buy||R149.99||R169.99||13%|
|New HD movie, rent||R39.99||R44.99||13%|
|New SD movie, buy||R119.99||R129.99||8%|
|New SD movie, rent||R29.99||R34.99||17%|
|Classic HD movie, buy||R139.99||R159.99||14%|
|Classic HD movie, rent||R29.99||R34.99||17%|
|Classic SD movie, buy||R109.99||R129.99||18%|
|Classic SD movie, rent||R19.99||R24.99||25%|
It’s worth noting that for the most part, movies and music in the South African iTunes store are still cheaper than the US store.