Re: Digital products taxed in SA from April: Treasury

Calvin Browne <[email protected]>
Newsgroups gmane.org.operators.ioz
Message-ID <[email protected]>
On 31/01/2014 13:43, dominic wrote:
> <SNIP>
>
>     "It is a profit issue at the end of the day. VAT at 14% in South Africa
>     is a material number in your profits so online businesses will pass
>     that on [to consumers]. There is not much doubt in that," said
>     Soverall.
>
<SNIP>

Umm - "profit issue" - someone hit this guy with an Accounting 101 text 
book, or lock him up for tax fraud.

VAT affects profit as much as, well, nothing.

It may (and probably does) make an impact on pricing competitiveness....

(my 40 cents worth - gad I'm running out of money)

--Calvin



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