Digital VAT and Google ads in South Africa
Google is analysing the draft regulation that is set to impose value added tax (VAT) on all digital goods sold in South Africa from 1 June 2014, a spokesperson for the search giant has told South Africa.
“We will ensure that our business continues to comply with South African law when any changes come into effect,” Google said.
Google said that under current rules, the reporting and remittance of VAT is the responsibility of advertisers, which the company said pay the same rate whether they advertise with Google or any other company.
“Google complies with tax laws in South Africa and every country where we operate,” the spokesperson said.
National Treasury published new electronic service regulations for public comment towards the end of January 2014 which would see 14% VAT charged on digital products and services.
The deadline for public comments was 20 February 2014, and the final regulations have been published in the government gazette.
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