Subscribe & Follow

Advertise your job vacancies

VAT charged on foreign digital services

28 Feb 2013

The government has proposed that all foreign businesses supplying e-books‚ music and other digital goods and services in South Africa be required to register as VAT vendors.

In the Budget Review document released on Wednesday (27 February)‚ the National Treasury said this was in line with international trends‚ such as regulations adopted by the European Union requiring such suppliers to register for VAT in the country where the consumer resides.

"In the case of imported services or digital supplies‚ such as e-books or music‚ no border post or post office can perform the function as collecting agent‚ as is the case with physical goods. The net result is that the local consumer can buy imported digital goods or services without paying VAT‚" the document said.

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za