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SA’s Digital tax postponed to June

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taxpostponed

Because you don’t pay enough tax already, you’ll soon be paying VAT on all of the the digital things you buy, according to new legislation from the South African Revenue Service. That new tax was meant to com in to effect from tomorrow – but to save everyone from being a fool, the tax has been postponed.

That’s according to Mybroadband, who spotted the later date in the government Gazette. That means you still have a few months to enjoy significantly cheaper digital purchases on your games and media.

The new legislation would add our 14% VAT levy on to digital games, movies, books and all similar purchases form online stores, whether they’re based locally or internationally. Yes, that would mean that the price of your games from services like Steam, PSN, Xbox Live, Google Play and iTunes are set to increase.

“This announcement was made against the backdrop of efforts, both internationally and locally, to bring cross border e-commerce (specifically the digital economy) into the VAT regime,” The Treasury said in a statement on the new taxation when it was first announced.

“The current application of VAT on imports does not lend itself to the effective enforcement on imported services or e-commerce where no border posts (or parcel delivery agents, e.g. the Post Office) can perform the function as collecting agents, as is the case with physical goods.”

“The net result is that the local consumers can buy imported digital products without paying VAT. This outcome not only places local suppliers of digital services at a competitive disadvantage (compared to suppliers from abroad) but also results in a loss of revenue for the fiscus.”

We’ve heard some disquieting rumour that digital game and media prices are set to increase higher than you might expect. If you want to get your games for cheap, take advantage of this two month long reprieve to do so.

Last Updated: March 31, 2014

77 Comments

  1. Mark Treloar

    March 31, 2014 at 08:35

    So wait does this mean they will enforce import duties as well?

    Reply

  2. Umar hearts Grandia

    March 31, 2014 at 08:35

    I’m already struggling to afford games as it is……

    Reply

    • Hammersteyn

      March 31, 2014 at 08:54

      Ditto

      Reply

  3. Mossel

    March 31, 2014 at 08:36

    Hopefully just in time for the Steam Winter Sales.

    Reply

    • TiMsTeR1033

      March 31, 2014 at 09:01

      Stay strong! Winter is coming.

      Reply

      • Kensei Seraph

        March 31, 2014 at 09:10

        Can’t wait for the dragons to show up.

        Reply

        • TiMsTeR1033

          March 31, 2014 at 09:12

          Dragons? I dunno what season you watching, I’m only started Se 2 and loving it! I’m guessing they big in Se4.

          Reply

          • Rince

            March 31, 2014 at 09:14

            See them first end of season 2 😉

          • TiMsTeR1033

            March 31, 2014 at 09:16

            See them big end of season 2? They still tiny now and never said what meat they eat. Last I saw last night snow was seeing what man in village beyond the wall is doing with boy babies. Flippin getting hectic now. Well for me anyway lol!

          • Rince

            March 31, 2014 at 09:21

            Well, not BIG BIG, but a pretty cool ending. Looking forward to season 4. Have you tried Vikings yet?

          • TiMsTeR1033

            March 31, 2014 at 09:24

            Nope, any good?

          • Rince

            March 31, 2014 at 09:26

            Yeah. Season 2 just started. It’s not like GoT though, no tits, swearing and family incest. It’s done by History, have a look out for it.

          • Alien Emperor Trevor

            March 31, 2014 at 09:49

            No tits? Well that’s just pointless.

          • TiMsTeR1033

            March 31, 2014 at 09:50

            Nudity in all honesty is kinda thrown in GOT sometimes, like you think “really is this necessary??”

          • Rince

            March 31, 2014 at 10:17

            Agreed. That’s why I like Vikings.

          • Skoobaz

            March 31, 2014 at 15:35

            What dragon series you guys talking about? full name?

          • Rince

            March 31, 2014 at 15:44

            Game of Thrones?

          • Nitro

            March 31, 2014 at 12:37

            Well.. done… Slow clap

  4. Alien Emperor Trevor

    March 31, 2014 at 08:38

    How much is that disquieting rumour in the window? The one with the digital delivery?

    Reply

    • Rince

      March 31, 2014 at 08:48

      You win the internet 😉 Nice one man, coffee number? Doors 1-99 open…

      Reply

      • Alien Emperor Trevor

        March 31, 2014 at 08:49

        2. 3 is on it’s way to be made.

        Reply

      • Alien Emperor Trevor

        March 31, 2014 at 09:28

        No.3!

        Reply

  5. Kensei Seraph

    March 31, 2014 at 08:46

    Hopefully it gets delayed even further.

    Reply

    • TiMsTeR1033

      March 31, 2014 at 08:57

      How about indefinitely.

      Reply

      • Mossel

        March 31, 2014 at 09:02

        Definition of indefinitely: When you are balls deep, you are indefinitely.

        Reply

        • TiMsTeR1033

          March 31, 2014 at 09:04

          Definition of Fart: Slight explosion between the legs.

          Reply

  6. Rince

    March 31, 2014 at 08:50

    So the executioners hand is stayed a short while longer, oh well… Good for us… http://quicklol.com/wp-content/uploads/2012/12/dog-jumping-over-a-camp-fire.gif

    Reply

    • Hammersteyn

      March 31, 2014 at 08:53

      Hot dog!

      Reply

    • Alien Emperor Trevor

      March 31, 2014 at 09:04

      It’ll take forever to cook him that way.

      Reply

      • Rince

        March 31, 2014 at 09:07

        Not if it’s how I like my steak…

        Reply

        • Alien Emperor Trevor

          March 31, 2014 at 09:08

          That’s exactly how you like it. Rare 😛

          Reply

  7. Hammersteyn

    March 31, 2014 at 08:53

    Everything gets postponed in this country, even taxes.

    Reply

  8. TiMsTeR1033

    March 31, 2014 at 08:56

    South Africa, the country with the gift of “giving” you more!

    Reply

  9. Umar hearts Grandia

    March 31, 2014 at 08:59

    I didn’t ask for this, why should I pay #zuma #myhero

    Reply

  10. Admiral Chief of Auraxis

    March 31, 2014 at 09:10

    The week is off to a good start

    Reply

    • TiMsTeR1033

      March 31, 2014 at 09:12

      not for 5fm listeners though..

      Reply

      • Alien Emperor Trevor

        March 31, 2014 at 09:13

        Sure it is. Why do you think I stopped listening to 5fm ages ago?

        Reply

        • TiMsTeR1033

          March 31, 2014 at 09:14

          I enjoyed listening to Gareth Cliff in the morning, that’s about it though.

          Reply

        • Rince

          March 31, 2014 at 09:23

          At least Cliff pissed off people by being a dick. Even in his negative he has more personality then the rest of the cretins on radio.

          Reply

          • TiMsTeR1033

            March 31, 2014 at 09:26

            Thank you for saying that man! Flippin bullshit how he is going, 10 flipping years and now just POOF gone. Zuma and his meddling ways perhaps the real reason. Unless he and most of team really did get “better” opportunities.

          • Rince

            March 31, 2014 at 09:28

            I think 7 years but yeah, he may have been very controversial but he was entertaining and he isn’t stupid. I listen to the other fucks on radio who laugh at their own pathetic jokes and wonder where they find them.

          • Mossel

            March 31, 2014 at 09:33

            Wait…did I miss something? Cliff is gone?! Although I didn’t like 5fm, he was quite cool though, if he wanted to be.

          • Rince

            March 31, 2014 at 09:36

            His last day is today. Also quite shocked!

          • Mossel

            March 31, 2014 at 09:48

            I call bullshit. Tomorrow is April 1. He’s gonna be back be all like “Yeah April fool! lol”

          • TiMsTeR1033

            March 31, 2014 at 09:49

            I hope you right! I flippin hope!

          • Rince

            March 31, 2014 at 10:19

            Hahaha, I wouldn’t be surprised.

          • TiMsTeR1033

            March 31, 2014 at 09:47

            Whack head, is okay but gets kinda dull. I enjoyed 94.7 when Jeremy Mansfield was on, but then again you live in CT so I doubt you listened to 94.7 highveld lol

          • Alien Emperor Trevor

            March 31, 2014 at 09:32

            I’ll agree there. I just found most of his attempts to be dull. I used to get a good laugh out of the people complaining about him though.

          • Rince

            March 31, 2014 at 09:32

            Yeah. I remember this one old granny calling in saying ‘stop laughing, god can see you’ and all he could reply with was ‘really? What am I doing now’ I was late to work that day.

          • Mossel

            March 31, 2014 at 09:32

            I switched to 567 CapeTalk a year ago. Haven’t looked back since. They actually talk about interesting things/facts. Compared to the rest that make stupid fart jokes and play “music.”

          • Rince

            March 31, 2014 at 09:34

            Ya, I like 567, but it can also be a bit heavy and depressing. I listen to Tuks FM as they have decent music. It’s a pity the people they have practising their skills on it are all retarded though. When you have a news anchor who is unable to pronounce her own name without stuttering you know it’s time to call it quits and pic up another hobby…

          • Mossel

            March 31, 2014 at 09:47

            LOL! Yeah, that’s quite true. It can be depressing some times. But on the other hand they have cool debates, and people actually participate. They aren’t just cut off if the presenter doesn’t agree with them.

        • Rags

          March 31, 2014 at 11:23

          I agree. I have switched to small American radio and have never looked back. Channels dedicated to classic rock. None of this pop chart bullshit. :D/

          Reply

      • Kromas

        March 31, 2014 at 11:31

        Yeah he will most likely move to MiX FM 93.8. Switched to them and loving it.

        Reply

  11. UltimateNinjaPandaDudeGuy

    March 31, 2014 at 09:17

    I really hope this get postponed for the rest of my life or at least till after the Steam sale coming in June o/

    Reply

  12. Sir Rants A Lot Llew. Jelly!!!

    March 31, 2014 at 09:19

    Petrol – Up (many times)
    E-Tolls – costly
    Food prices – Up
    Interest Rates – Up earlier
    electricity – Up

    Tax on all these?
    Petrol – all sorts of Tax Yes
    e-tolls – VAT yes
    Food – Vat Yes
    Interest Rates – duh
    Electricity – VAT yeah

    Now games as well?

    Salary up? – Urm no 🙁

    Reply

    • TiMsTeR1033

      March 31, 2014 at 09:26

      Hows the new car going man?

      Reply

      • Sir Rants A Lot Llew. Jelly!!!

        March 31, 2014 at 09:34

        Like a dream. Had a CD player for the first time in YEARS. Put in some old mix CD’s I made way back…. Needless to say I was a little horrified and a little ashamed at some of my music choices… lol.

        That is until the Naruto OST started playing on my way to work this morning. BOOYEAH!!! Crank that up!

        Reply

        • TiMsTeR1033

          March 31, 2014 at 09:45

          Thats awesome man. It’s a nice little car too, should be great for being light on petrol too.

          Reply

    • Alien Emperor Trevor

      March 31, 2014 at 09:27

      Well you do pay tax on games if you buy a hard copy in a shop, and as stated above, local online retailers charge VAT.

      Reply

    • Skyblue

      March 31, 2014 at 14:28

      Hey look at the bright side… “official” inflation will still be posted at under 5%
      To quote Leo ,”This is Africa my friend.”

      Reply

  13. El Capitan del Blade

    March 31, 2014 at 09:29

    The net result is that the local consumers can buy imported digital products without paying VAT. This outcome not only places local suppliers of digital services at a competitive disadvantage (compared to suppliers from abroad) but also results in a loss of revenue for the fiscus.”

    What Local Suppliers of Digital Services?

    No Seriously, do those even exist?

    Reply

    • Kromas

      March 31, 2014 at 11:29

      Evo Points, BT Games online and others.

      Reply

      • El Capitan del Blade

        March 31, 2014 at 11:38

        I don’t see how they’re negatively affected. BT Games online (as shitty as the service is), still provides games CHEAPER at launch than say, Anyone Else. case in point: South Park Stick of truth, Steam/GMG/ Everywhere else, USD60 vs. BT Games: R480. So BT Games online is not at a disadvantage because of lack of VAT, it’s their own infrastructure that Sucks.

        EVO points is also cheaper, what with working at a straight USD 1 = R10.

        I guess whta I’m saying is. VAT won’t change a thing for these two (arguably the biggest) Online merchants in S.A.
        ergo, that quoted reason above, is not even remotely true.

        Reply

        • Kromas

          March 31, 2014 at 11:40

          Never disagreed just answered your question about the existence of local suppliers.

          Reply

  14. Rock789

    March 31, 2014 at 09:35

    I would state here what I think of this SARS initiative to line their pockets with some Nkandla cancelling money… But I’m afraid that level of profanity is simply not allowed online!

    As if we weren’t taxed enough…

    Reply

    • Alien Emperor Trevor

      March 31, 2014 at 09:45

      Look at what I got on Sat 😀

      Reply

      • Rock789

        March 31, 2014 at 09:58

        Awesome! Now that is shweeeet! 🙂

        Reply

        • Rince

          March 31, 2014 at 09:58

          Only carpet he’ll ever get *runs

          Reply

          • Alien Emperor Trevor

            March 31, 2014 at 10:02

            It’s not a carpet, it’s a mouse rug. Peasant.

  15. Sk3tz0

    March 31, 2014 at 10:16

    Aah the Goverment: Leo Getz, gets it..

    Reply

  16. CaptainNemo42

    March 31, 2014 at 10:36

    I renewed my PS+ yesterday in anticipation for this. I’m good to go until Dec 2015

    Reply

  17. R1ker

    March 31, 2014 at 11:12

    Won’t we be able to bypass this by using a vpn or something?

    Reply

  18. Michael

    March 31, 2014 at 15:39

    Nope, the card you use for the transaction is linked to SA

    Reply

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