New digital tax for South Africa postponed

After a period of public comment, the National Treasury has published its new regulations that aim to introduce South Africa’s 14% VAT on all digital goods and services, even those bought from foreign companies.

Treasury first published the draft regulations on its website towards the end of January 2014, giving interested parties until 20 February to comment on them.

The draft regulations stipulated a 1 April 2014 implementation date of the sales tax on digital goods and services.

Minister of Finance Pravin Gordhan published the actual regulations on Friday, 28 March 2014, in Government Gazette No. 37849.

In this document, the commencement date of the regulations is set for 1 June 2014.

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New digital tax for South Africa postponed