Re: Digital products taxed in SA from April: Treasury

I've already since some time last year alerted people to this. Looks
like it's only now after the implementation is eminent that people
woken up to it??

On Fri, Jan 31, 2014 at 1:59 PM, Calvin Browne
<[email protected]> wrote:
>    Does anyone have any ideas on how they're actually going to enforce
>    this?
>    Or maybe this date from the regulations is telling:
>    "These regulations are called the Electronic Services Regulations and
>    come into
>    operation on 1 April 2014."
>    (my 14 cents worth)
>    --Calvin
>
>    On 31/01/2014 13:43, dominic wrote:
>
>    [1][1]http://mybroadband.co.za/news/internet/95953-digital-products-taxed-
>    in-sa-from-april-treasury.html
>
>
>    [2]Treasury has published new electronic services regulations,
>    detailing which digital products and services will be subject to 14%
>    VAT come 1 April 2014.
>
>    The regulations have been published by Finance Minister [3]Pravin
>    Gordhan for comment, and follow the proposals he made in his 2013
>    budget speech to impose VAT on foreign businesses who "sell e-books,
>    music and other digital goods and services".
>
>    The regulations are called the Electronic Services Regulations and come
>    into operation on a proposed date of 1 April 2014.
>
>    In terms of the regulations, the VAT will apply to any supplier of
>    electronic services from an "export country" to any resident in South
>    Africa, or where payment is made from a local bank.
>
>    What exactly will be taxed? The list below details all digital goods
>    and services which will be impacted, according to the regulation
>    document:
>
> Educational services
>
>    .         distance teaching programmes;
>
>    .         educational webcasts;
>
>    .         internet-based courses;
>
>    .         internet-based education programmes; or
>
>    .         webinars,
>
> Games and games of chance
>
>    .         internet-based games, including any electronic game or
>    multiplayer role-playing game;
>
>    .         interactive games, such as games of chance, where the result
>    is influenced by the skill of the player;
>
>    .         electronic betting or wagering.
>
> Information system services
>
> Internet-based auction service
>
> Maintenance services
>
>    Which refers to technical support relating to
>
>    .         blogs;
>
>    .         databases;
>
>    .         information systems;
>
>    .         information system services; and
>
>    .         websites.
>
> Online content
>
>    .         e-books, which means any digitised content of any book or
>    electronic publication;
>
>    .         films, which means any broadcast, documentary home-made
>    video, live streaming performance, movie, music video, program,
>    television series, or video
>
>    .         images, which means any desktop theme, photographic image,
>    pictorial image, or screensaver,
>
>    .         music, which means any audio clip, broadcast jingle, live
>    streaming performance, ringtone, song, or sound effect,
>
>    .         software, including apps, system software, or plugins, and
>    any update to these programs.
>
> Subscription services
>
>    Any subscription service to:
>
>    .         blogs;
>
>    .         databases;
>
>    .         information system services;
>
>    .         journals;
>
>    .         magazines;
>
>    .         newspapers;
>
>    .         games;
>
>    .         social networking services;
>
>    .         webcasts;
>
>    .         websites;
>
>    .         web applications; or
>
>    .         web series.
>
>    The added taxes on digital goods is likely to push the price of goods
>    up, a tax expert has said.
>
>    Following the initial proposal for a digital tax, Gerard Soverall, PWC
>    `s head of indirect tax, said that, considering the revenue generated
>    by large online retailers, governments are losing out on large amounts
>    of VAT.
>
>    "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.
>
>    Soverall argued that, even if the 14% SA VAT is passed on to consumers,
>    digital goods are still likely to be more affordable than the physical
>    equivalent purchased in brick and mortar shops.
>
>    [The Electronic Services Regulations is available on the National
>    Treasury website: [4]www.treasury.gov.za and the South African Revenue
>    Service website: [5]www.sars.gov.za.
>    Written    comments    should    be    submitted    to    Mr.
>    Mpho    Legote,    email: [[2]6][email protected] and SARS,
>    email [[3]7]policycomments-hP/[email protected] by the close of business on 20
>    February 2014.
>    Issued by National Treasury Date:    30 January 2014]
>
> References
>
>    1. [4]http://mybroadband.co.za/news/internet/95953-digital-products-taxed-in-
> sa-from-april-treasury.html
>    2. [5]http://mybroadband.co.za/vb/showthread.php/477252-National-Treasury
>    3. [6]http://mybroadband.co.za/vb/showthread.php/314269-Pravin-Gordhan
>    4. [7]http://www.treasury.gov.za/
>    5. [8]http://www.sars.gov.za/
>    6. [9]mailto:[email protected]
>    7. [10]mailto:policycomments-hP/[email protected]
>
>
> _______________________________________________
> IOZ mailing list
> [11][email protected]
> [12]http://lists.internet.org.za/mailman/listinfo/ioz
>
> References
>
>    1. http://mybroadband.co.za/news/internet/95953-digital-products-taxed
>    2. mailto:6][email protected]
>    3. mailto:7]policycomments-hP/[email protected]
>    4. http://mybroadband.co.za/news/internet/95953-digital-products-taxed-in-sa-from-april-treasury.html
>    5. http://mybroadband.co.za/vb/showthread.php/477252-National-Treasury
>    6. http://mybroadband.co.za/vb/showthread.php/314269-Pravin-Gordhan
>    7. http://www.treasury.gov.za/
>    8. http://www.sars.gov.za/
>    9. mailto:[email protected]
>   10. mailto:policycomments-hP/[email protected]
>   11. mailto:[email protected]
>   12. http://lists.internet.org.za/mailman/listinfo/ioz
>
> _______________________________________________
> IOZ mailing list
> [email protected]
> http://lists.internet.org.za/mailman/listinfo/ioz
>

_______________________________________________
IOZ mailing list
[email protected]
http://lists.internet.org.za/mailman/listinfo/ioz