A couple years ago, South Africa imposed a 14% VAT on digital purchases. At the time, we went looking and it appeared that Steam wasn’t actually applying that tax. Then our Steam changed to local currency, and pricing continued to be great. Well, that’s about to change as Steam is finally complying with international tax laws, which means we’re in for quite an increase.
Reported by Gamespot, an email has gone out to partners today from Steam indicating that it will be including sales tax in storefront prices across ten new countries, including Australia, New Zealand and of course, South Africa. Here are the planned increases:
March 2017:
- Switzerland 8%
- South Korea 10%
- Japan 8%
- New Zealand 15%
- Iceland 24%
- South Africa 14%
- India 15%
April 2017:
- Serbia 20%
May 2017:
- Taiwan 5%
July 2017:
- Australia 10%
Geez that’s painful. As if the recent budget speech didn’t already put a damper on my shopping as it is, now games are also going to get even more expensive. It’s not going to be too bad when we buy our cheap indie games during Steam sales, but new releases? Looks like even PC games will edge past R1000 mark. Perhaps this will actually be good for the local market, though. I mean, if prices go up like this, buying PC games at retail might become more appealing and maybe our local distributors can negotiate for a better price. Or, we will just end up spending more money on all the things anyway.
Let’s just all be grateful we don’t live in Iceland, okay?
Last Updated: February 23, 2017
Lu
February 23, 2017 at 13:24
They warned us a while back this would happen. Steam’s prices have been great up to now (compared with the $ price).It kinda sucks, but Death and Taxes. At least there’s still Humble Bundle.
EDIT: A $60.00 game would cost R778.08. Its current price is R600, R684.00 with VAT. So still better off with local currency.
Alien Emperor Trevor
February 23, 2017 at 13:25
Humble Monthly ftw!
Lu
February 23, 2017 at 13:27
Total WarHammer for R154 plus 5 other games? TaxWhatNow?
Alien Emperor Trevor
February 23, 2017 at 13:28
And last month XCOM 2? Shit, I’m suffering over here. Send help. 😀
Lu
February 23, 2017 at 13:30
Skipped Xcom 2 (Still gotta finish 1). But yeah, R600 or R150…. not a hard choice
Matthew Figueira
February 23, 2017 at 13:24
https://media.giphy.com/media/12XMGIWtrHBl5e/giphy.gif
Matthew Figueira
February 23, 2017 at 13:24
lol as if I need more games anyway 😐
Alien Emperor Trevor
February 23, 2017 at 13:34
You need more DOTA cosmetics!
Lu
February 23, 2017 at 13:37
YOU CAN NEVER HAVE ENOUGH SETS!
Tracy Benson
February 23, 2017 at 13:24
Can someone ELI5 please: where does that money go? So, Steam are now collecting VAT, who do they pay it to? I don’t know if I understand the mechanics behind digital taxes…
Gavin Mannion
February 23, 2017 at 13:26
They pay a VAT return to SARS and then it goes to worthy causes like Nkandla and eTolls
Allykhat
February 23, 2017 at 13:29
And the fleet of BMWs and Mercs! Dont forget the BMWs and Mercs!
Lu
February 23, 2017 at 13:31
Gaben is WMC.
Captain JJ
February 23, 2017 at 14:05
So worthy it makes me want to stand up and sing the national anthem.
Lu
February 23, 2017 at 14:11
Kazakstan is greatest country in the world.
All other countries run by little girls.
Kazakstaaaan. Greatest Exporter of potassium.
All other central asia countries have inferior potassium.
HvR
February 23, 2017 at 14:49
Well it is not a digital tax, it is tax “at the till” on a consumables; the same you on 90% of the items in your grocery bag.
It goes along with about 60% of the money you pay for fuel, 60% of the money you pay for bottle of brandy/whisky/shooters, 25% of that bottle of wine into a big bucket called the general fiscus.
From the bucket it goes everywhere except where it should.
K1FF J1MB0B (sizzle edition)
February 23, 2017 at 13:29
So in other words, instead of paying 10 cents per game, PC dudes gonna be paying 12c.
HvR
February 23, 2017 at 14:39
Yes, that scaly Gaben is pocketing the 0.6c
Original Heretic
February 23, 2017 at 13:31
Still gonna be cheaper than console games… I haven’t bought a new PS4 game in, well, I can’t even remember. Thank oogness for blacklogs.
Skyblue
February 23, 2017 at 14:15
That and PS+
Original Heretic
February 23, 2017 at 14:17
Yup. And also, raiding games from my buddy. Between the two of us, we have quite a library of games. It’s a win-win. We’ve made a deal that for single player games, only one of us buys. Then we just pass it across when done.
schitsophrenic-toothbrush
February 23, 2017 at 14:18
I hear you guy, I steal PS4 games from my Aunt (she jams ps4). Busy playing her battlefield 1 online!
Original Heretic
February 23, 2017 at 14:25
I borrowed the Uncharted collection from my bud. Never had a PS3, so I never got to jam them. That kept me busy for a while.
Picked up Uncharted 4 second hand, for a steal. LOVING it. What a game!
schitsophrenic-toothbrush
February 23, 2017 at 14:32
Yeah dude, Bought the the uncharted collection on PS4 for a steal at like R280 on a special at dion wired and then grabbed uncharted 4 from my aunt. finished uncharted 1, its pretty good
Original Heretic
February 23, 2017 at 14:34
I’ve loved the stories. I’m a sucked for any kind of good adventure/ancient mystery storyline. And damn, they did them well.
Not to mention the amazing voice acting.
All in all, a phenomenal series of games.
Made me love Naughty Dog even more!
Skyblue
February 23, 2017 at 14:39
It gets better, trust me. One of the greatest series of games I’ve played along with Mass Effect, GoW, Gears, etc.
Skyblue
February 23, 2017 at 14:20
Probably the best solution and it keeps you buying non-digital. There is a way around swapping out digital purchases with one friend but I’m too lazy to find it now.
Original Heretic
February 23, 2017 at 14:23
For the PS games, digital and hardcopies are nearly the same price anyway.
HvR
February 23, 2017 at 14:26
Digital is more expensive half the time.
Original Heretic
February 23, 2017 at 14:32
The only one I got cheaper digitally was Dark Souls 3.
Skyblue
February 23, 2017 at 14:26
True, I just hate physical copies due to clutter. I have enough PS1, PS2, Xbox360, etc clutter in my home. I even still have my C64 from back in the day but that’s a tale for another time.
Danny Baromen
February 23, 2017 at 13:32
And they were doing such a good job combatting piracy…. oh well…
Lu
February 23, 2017 at 13:37
Steam is just complying to our government’s laws. If the government decides brown bread isn’t non-vat anymore it doesn’t justify stealing it.
BakedBagel
February 23, 2017 at 13:42
Thing is, brown bread is brown bread.
Its not sold as half a loaf.
You get what you pay for.
Cant be said for R800 games
Lu
February 23, 2017 at 13:44
Hahaha off topic but 150% true.
Gavin Mannion
February 23, 2017 at 13:44
No one forces you to buy it…
BakedBagel
February 23, 2017 at 13:47
True, I understand why people pirate tho.
Steam’s Refund system helps. Especially when we look at NMS. Can we expect consumers to trust Hello Games? Maybe i dunno.
Captain JJ
February 23, 2017 at 14:04
Problem is completely misguiding advertising. Still no reason to pirate, but it does say a lot when you spend that amount of money on a game and it turns out not to be anything they promoted it as being.
Either way, I’ve ran into that myself, all it’s done is made me more careful when buying from certain publishers…or just not buying on release from those publishers at all.
Piracy is just a different form of greed, because they want it NOW, but don’t want to pay full price for it. Have some bloody patience.
Skyblue
February 23, 2017 at 14:12
Agreed. I only started playing The Witcher 2 (yes, 2) this week and it’s been in my library since a Steam Sale from… years ago. I wait for just about every title to drop in price as they’re inevitably flawed upon release and this game is proving no different as even after it was “fixed” years after the fact I’m still finding it especially frustrating in certain area’s due to poor development choices.
Patience is the key here and I have such a backlog that I really have no excuse to pirate games.
Captain JJ
February 23, 2017 at 14:16
Yea man. I bought Deux Ex Mankind Divided last year, which was my only release title of the year and it just wasn’t worth it. A few months later it’s R150 on sale. So now I happily wait until it’s ironed out. Like you say, that backlog is another good reason.
Skyblue
February 23, 2017 at 14:19
I never purchased Mankind Divided and it went on sale 3 months after release due to what I’m assuming were poor sales. Huge fan but I couldn’t justify paying that original price for it but it hit the backlog in December. Now to find the time…
Captain JJ
February 23, 2017 at 14:22
It’s barely worth it at that reduced price. Really disappointing game, considering where it came from. Square Enix went full greed with it.
Skyblue
February 23, 2017 at 14:30
Damn, now I almost regret purchasing it, almost. Will check it out for myself.
Captain JJ
February 23, 2017 at 14:33
Look, it’s not a kak game, it’s just nothing compared to the original or Human Revolution. I’d say the coolest thing about the game are the trailers, which speak of an emotional and deep experience. Don’t expect that.
Skyblue
February 23, 2017 at 14:36
Those trailers were really good, not Dead Island or Ghost in the Shell good but I did enjoy them.
Original Heretic
February 23, 2017 at 14:22
Eesh, W2 is the weakest in the series… IMO.
Skyblue
February 23, 2017 at 14:25
I couldn’t finish the first title as the controls were horrendous and trust me, I tried, I really tried. I have the 3rd installed and ready to go but want to finish the 2nd and just like W1, they had me at that intro. It is still seriously flawed in the gameplay dept.
Original Heretic
February 23, 2017 at 14:26
Weirdly enough, I thoroughly enjoyed W1 (I jammed it on PC way back in the day).
And I hear you, that intro was amazing.
Alien Emperor Trevor
February 23, 2017 at 14:26
Yeah it’s a bit of a rough gem. If you’re playing on PC try out the combat rebalance mod, it makes combat much more responsive.
Skyblue
February 23, 2017 at 14:29
Thx, will check it out after nearly breaking my keyboard killing that damn Kayran last night. Will be back at it again tonight though.
Magoo
February 23, 2017 at 13:37
Way to promote G2.
Kromas Ryder
February 23, 2017 at 13:37
We knew it was happening for almost a year now. Not a shocker.
Alien Emperor Trevor
February 23, 2017 at 13:40
The store already says it includes VAT where applicable at checkout. I thought we already were paying VAT. Heh.
Lu
February 23, 2017 at 13:42
They discounted us for some or other reason. Chances are though that its still cheaper than the $ equivalent price
Kromas Ryder
February 23, 2017 at 13:42
Nope. Was not implemented for South Africa yet.
Now it is.
Captain JJ
February 23, 2017 at 14:05
Yea. Me too.
Fox1 - Retro
February 23, 2017 at 13:39
In Iceland games would still be affordable.
Where does Origin stand on this issue?
Kromas Ryder
February 23, 2017 at 13:43
They have been paying vat for a while if I am not mistaken.
Viking Of Science
February 23, 2017 at 13:42
Well, FUCK.
Kromas Ryder
February 23, 2017 at 13:46
To be fair in most cases if we were still working in dollars the games would have still been more expensive (this was at least true till America became great again).
Lu
February 23, 2017 at 13:47
Yeah worked it out (See edited comment below). Still almost R100 cheaper on a $60 game
.
Kromas Ryder
February 23, 2017 at 13:48
And once Pravin gets sacked it will be R20 a dollar again.
Happening soon enough.
Lu
February 23, 2017 at 13:49
At least we’ll be able to play Fallout in real life once the nuclear reactor pops…..
Kromas Ryder
February 23, 2017 at 13:51
As someone who works in the civil engineering industry I can say without a doubt that we will be dead and buried before that plant even comes online. Expect striking,wage disputes,corruption,blueprint changes and red tape to make a 5 year build take 25 years.
BakedBagel
February 23, 2017 at 13:51
Just like our bridges. FeelsSadMan
Kromas Ryder
February 23, 2017 at 13:52
We are still building Kusile. You know that super powerstation that should have been completed in 2013.
Lu
February 23, 2017 at 13:52
Good point.
Kensei Seraph - Terran Ghost
February 23, 2017 at 15:35
25 years.
I see that you are an optimist.
BakedBagel
February 23, 2017 at 13:48
[FREEDOMS INTERNALLY]
Captain JJ
February 23, 2017 at 14:01
Games on Steam are still so cheap, so it’s not really going to bother me much.
Also, Humble Monthly ftw.
HvR
February 23, 2017 at 15:05
If we lived in Iceland, my income tax will half. No school fees, no medical aid.
Now we are sitting at whole new PC every month or both consoles.
Yeah will gladly pay that extra 10%
Gavin Mannion
February 24, 2017 at 06:15
Iceland Income Tax rates are actually very comparable to ours with the exception that their top rates are even higher.
apparently on health care you are going to be paying around 15% of the cost but that’s not bad.
At 4.3% unemployment it is tempting but on the other hand remember the entire country virtually went bankrupt during the banking crisis.
Apparently they also have amazing fishing so I’d love to go there on holiday… not to live though. It’s too teeny
Craig "CrAiGiSh" Dodd
February 23, 2017 at 15:14
“It’s the end of the world as we know it”
Kensei Seraph - Terran Ghost
February 23, 2017 at 15:33
I’ve been thinking about moving to Japan.
HairyEwok
February 23, 2017 at 16:11
Same, problem for me is, the cost of living there is way waaaaay higher than what were used to. New York is used as the global standard at 100%, Japan is at 90% (so 10% cheaper). To give an idea where we sit, South Africa is at 46%
Gavin Mannion
February 24, 2017 at 06:10
is Australia at 120%? I can definitely attest to our cost of living being cheaper than most places.. but it does feel to be increasing over the last few years.
Also our cost of living excludes luxury things like fancy tv;s etc surely? They are so expensive here
HairyEwok
February 24, 2017 at 08:26
Yeah it really does feel like cost of living is getting more expensive (maybe due to so many things actually being imported these days) and really puts strain on the lower and middle class South African.
I’ve checked the index again and Australia is actually cheaper than Japan by a small margin, their cost of living is at 86%.
But yeah the index I’ve looked at is just the basics, no luxuries included, here’s the link to it so you may have a look at it yourself 🙂
https://www.numbeo.com/cost-of-living/rankings.jsp
HairyEwok
February 23, 2017 at 16:00
Well that’s it. Now I’ll only be able to afford 1 game with me saving up the whole year and using my bonus.
Galbedir
February 23, 2017 at 16:57
Sucks but i’ll be fine, I have a steam backlog that will last me for years to come.
Aries
February 23, 2017 at 18:55
NOOOOOOOOOO! damn
Justin Hoar
February 24, 2017 at 09:08
That’s why you wait for Steam sales
Deceased
February 24, 2017 at 13:28
Whoooo!!!
Then once the petrol-price increase hits, our digital games should also get more expensive – and don’t forget the incoming sugar-tax ( to promote a healthy life-style ) … well, we’re fucked 🙂