Re: Digital products taxed in SA from April: Treasury
Calvin Browne <[email protected]> Fri, 31 Jan 2014 14:40:46 +0200
| Newsgroups | gmane.org.operators.ioz |
|---|---|
| Message-ID | <[email protected]> |
Well - the stuff was published on treasury website yesterday... with a comment period until the 20th February. --Calvin On 31/01/2014 14:33, Hendrik Visage wrote: > 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 _______________________________________________ IOZ mailing list [email protected] http://lists.internet.org.za/mailman/listinfo/ioz