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Free Soul Styles

SA digital tax coming in April

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Free Soul Styles

Hi everyone,

 

I heard a story that as of April 2014, any transactions/purchases via the internet will be liable to pay vat. As a seller i will have to start charging buyers vat and still do the whole tax return thing....

 

Not sure how true this is, any info would be appreciated.

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mrmouse
Hi everyone,

 

I heard a story that as of April 2014, any transactions/purchases via the internet will be liable to pay vat. As a seller i will have to start charging buyers vat and still do the whole tax return thing....

 

Not sure how true this is, any info would be appreciated.

IF true I would see it working as such :

You yourself wont pay vat , unless your turnover is over a specified amount around 1.2 million , or you have voluntarily applied for vat ,

Edited by mrmouse
answered by Mac

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Free Soul Styles

My husband was going through something or other and came across an article. Basically, Bid or Buy is an internet company and as of the new companies registered, vat will have to be compulsory as of April 2014. (paraphrasing, wasn't REALLY listening to him). That's basically it. I will put up a link if i find the article. As i said, it's what i heard, was curious.

 

Thanks

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mrmouse

it could get very nasty if implemented , it will push things over the edge ,( gotta pay for the new roads though)and a few houses .....ceremonies ... functions , lunches etc

Edited by mrmouse

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MacMuffin
it could get very nasty if implemented , it will push things over the edge ,( gotta pay for the new roads though)and a few houses .....ceremonies ... functions , lunches etc

 

Please note that on bidorbuy, all products are sold inclusive of VAT already. As such there is no change in the way we conduct business.

 

The new (and it is still "draft" and open for comment) proposal is to impose VAT on foreign businesses who “sell e-books, music and other digital goods and services”. This means, that if you buy an ebook on your Kindle or if you purchase a game via Steam/Xbox/PSN the international companies will have to charge VAT.

 

This would go as far as if you host a website overseas, your hosting company would have to charge VAT. It is still unclear how VAT will be collected from those companies. I doubt that the treasury/SARS would collect it from the consumer.

 

So in short - this legislation will have no impact on your trading.

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Vinyl Lady Decals

As I understand it, the normal VAT rules apply to us as it always has for any company where VAT is compulsory after a certain amount of turnover. It doesn't matter where you sell, whether its a physical shop or online.

 

The new rules will apply to foreign sellers who are selling digital goods in SA, such as ebooks that are bought from overseas and downloaded. at the moment, they don't pay any VAT and therefore SARS is losing out on potential taxes. These sellers will now have to register for VAT in SA and charge VAT to be paid over to SARS.

 

 

Aha, I see Mac got there as I was posting. :bigsmile::bigsmile::bigsmile:

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zerohour

SA digital tax coming in April

 

Treasury has published new electronic services regulations, detailing which digital products and services will be subject to 14% VAT come 1 April 2014.

VAT on foreign businesses who “sell e-books, music and other digital goods and services”.

What exactly will be taxed? The list below details all digital goods and services which will be impacted, according to the regulation document:

[h=3]Educational services[/h]

  • distance teaching programmes;
  • educational webcasts;
  • internet-based courses;
  • internet-based education programmes; or
  • webinars,

[h=3]Games and games of chance[/h]

  • 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.

[h=3]Information system services[/h][h=3]Internet-based auction service[/h][h=3]Maintenance services[/h]Which refers to technical support relating to

 

  • blogs;
  • databases;
  • information systems;
  • information system services; and
  • websites.

[h=3]Online content[/h]

  • 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.

[h=3]Subscription services[/h]Any subscription service to:

 

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TaLamia

I was also concerned about this when it came out and am very interested to see if this will have any impact at all on the Bidorbuy service. As far as I can see, Bidorbuy is a local and not foreign business, therefore they would not be charged the additional tax, am I correct?

 

EDIT: Ah I just read MacMuffin's post here: http://forum.bidorbuy.co.za/showthread.php?t=19204&p=162254#post162254

Edited by TaLamia

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