We already know that South Africa’s set to be hit by a new taxation on digital goods purchased from online stores based outside of of South Africa. This means your Steam PSN, Xbox Live, Google Play and iTunes purchases are set to increase – but we also know that we’ve been given a two month reprieve. It’s the calm before the storm. Unfortunately, as we told you yesterday, things are set to get worse.
When the Treasury first announced the new taxation it did so via a statement that used some rather particular wording to explain the new Electronic Services Regulations.
“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.
“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.”
Some of you, even yesterday, noticed how fiddly the wording was – as it hinted that not only would VAT be levied against digital imports, but they’d also be subject to customs duties. We can confirm this to be true – and it’s the reason the tax was delayed in the first place; so that both VAT and customs could be applied on your digital stores.
“What we’ve noticed is very positive growth of digital software purchases over the last four or five years, especially video games. While physical copies of games have increased the amount of units sold and shipped, our e-business section within SARS have also kept an eye on the e-commerce side of the industry,” said SARS Customs and Excise spokesperson Undida Isidenge in a press statement.
“Despite the fact that these are bought through digital platforms, that data that is transferred is still coming from overseas sources. That is a lot of revenue that has not been taxed with the relevant duties applied.”
“The free ride is over. When you import physical goods, you pay import duties VAT. These levies go towards building our country and strengthening our economy. People purchasing luxury items like games need to contribute as well. There have been millions lost in unpaid duties and taxes, something that SARS needs to address,” said Isidenge.
“Customs duties are imposed by the Customs and Excise Act 91 of 1964. They are levied on imported goods with the aim of raising revenue and protecting the local market. With the new Electronic Services Regulations that are in effect from June 1, 2014 as precedent, we have been able to amend the Customs and Excise Act No. 91 of 1964. As such, we have made provision to charge for Ad Valorem products as defined by the act.”
“By charging customs duties and VAT on digital goods, the gaming community can finally give back to South Africa for being allowed the freedom to enjoy their little hobby,” Isidenge said.
So there you have it. Not only are your games, movies and music set to increase by the 14% stipulated by the current VAT nonsense, but they’ll also be subject to customs duties. On digital goods. Honestly, I give up.
Yes, yes – it was an April Fools’ joke that we did in cahoots with the chaps at Mygaming.
Last Updated: April 1, 2014
Mark Treloar
April 1, 2014 at 07:48
Nice one, but no.
Sk3tz0
April 1, 2014 at 07:53
OMG… any see the poor fuking excuse of an april fool jok in the argus .. (facepalm)
Jedi JJ
April 1, 2014 at 07:53
What?
Sk3tz0
April 1, 2014 at 07:54
Cape Towns Bid for Winter Olympics.. I mean serious any knob that believe thats a knob..
Rince
April 1, 2014 at 08:47
Yeah, walked past the offices today and saw it on their wall. LAME.
Sniper
April 1, 2014 at 09:39
Not April Fools Joke
http://www.treasury.gov.za/ under 28 March.
Sniper
April 1, 2014 at 09:37
Not April Fools Joke
http://www.treasury.gov.za/ under 28 March.
http://www.sanews.gov.za/south-africa/electronic-services-regulations-published-public-comment
Jedi JJ
April 1, 2014 at 07:53
Wait. This ISN’T an April fool’s joke?
bob
April 1, 2014 at 07:56
Umm….guys.
http://mygaming.co.za/news/news/62958-sa-digital-downloads-get-new-customs-tax.html
Sk3tz0
April 1, 2014 at 07:59
On April 1st the law states dont trust shit on the Internet..
Alien Emperor Trevor
April 1, 2014 at 07:57
Sorry, it’s April 1. Link to SARS press release or I don’t believe you. 😛
Hammersteyn
April 1, 2014 at 08:09
Shit, how can we believe anything today?
Guest
April 1, 2014 at 08:18
…
Admiral Chief Railjack
April 1, 2014 at 08:26
Are you at home today?
Hammersteyn
April 1, 2014 at 09:10
No, killed Skype. Was pissing me off
Sniper
April 1, 2014 at 09:40
http://www.treasury.gov.za/ under 28 March.
No Longer SIR Twakkus
April 1, 2014 at 08:01
My blood is boiling….
Alien Emperor Trevor
April 1, 2014 at 08:03
Literally? I DON’T BELIEVE YOU!
Mark Treloar
April 1, 2014 at 08:05
He could be boiling a self-infused blood sausage?
Alien Emperor Trevor
April 1, 2014 at 08:09
lol
Jedi JJ
April 1, 2014 at 08:07
He’s the human torch.
Alien Emperor Trevor
April 1, 2014 at 08:09
Don’t be silly, his boiling blood would extinguish the flames.
Jedi JJ
April 1, 2014 at 08:11
I don’t believe you. We’ll have to put it to a test
Alien Emperor Trevor
April 1, 2014 at 08:18
I agree. Burn the witch! If he/she/it dies, then not a witch.
Mossel
April 1, 2014 at 08:03
If this is true (I will believe nothing today), then I guess I should stock up on my back log!
Admiral Chief Railjack
April 1, 2014 at 08:06
http://d24w6bsrhbeh9d.cloudfront.net/photo/anYV115_460sa.gif
Willem Swanepoel
April 1, 2014 at 09:18
hahaha omf I cannot stop laughing at it … please stop!!
Jim Lenoir (Banana Jim)
April 1, 2014 at 10:09
Hahaha that’s the best thing on the internet!
Admiral Chief Railjack
April 1, 2014 at 10:12
High praise! BANANA APPROVAL!
Admiral Chief Railjack
April 1, 2014 at 08:06
Today, I believe NOTHING
Jedi JJ
April 1, 2014 at 08:07
Same here.
I’m really surprised that they’ve found intelligent life on other planets though.
Alien Emperor Trevor
April 1, 2014 at 08:08
Hey!
Jedi JJ
April 1, 2014 at 08:09
😉
Admiral Chief Railjack
April 1, 2014 at 08:07
GET TO THE CHOPPA!!!! WE COME BACK TOMORROW!!!
http://d24w6bsrhbeh9d.cloudfront.net/photo/aQqVx8d_460sa.gif
Jedi JJ
April 1, 2014 at 08:07
Man, I loved this episode.
Alien Emperor Trevor
April 1, 2014 at 08:08
You know what else makes me suspicious? This is a Geoff article, but there aren’t any spelling mistakes or obvious grammatical errors. Too good to be true.
Rince
April 1, 2014 at 08:49
Noted.
Alien Emperor Trevor
April 1, 2014 at 08:51
Next time put in a few spelling mistakes ;P
Unavengedavo
April 1, 2014 at 09:21
And way more rage O_o
Lord Chaos
April 1, 2014 at 08:08
This is definitely an April fools joke… Good one though.
Umar hearts Grandia
April 1, 2014 at 08:10
LOL Today, we believe NOTHING!!!
Jedi JJ
April 1, 2014 at 08:12
You hear Tim turned out to be a girl?
Umar hearts Grandia
April 1, 2014 at 08:12
Is this new knowledge? 😛
Jedi JJ
April 1, 2014 at 08:13
I just thought it’s at least SOMETHING we can believe today.
Umar hearts Grandia
April 1, 2014 at 08:18
LOL 🙂
Alien Emperor Trevor
April 1, 2014 at 08:20
You’re such a gossip, Cleo.
Jedi JJ
April 1, 2014 at 08:23
Hmmmphh
Gareth L (That eXCheez Guy)
April 1, 2014 at 08:13
You guys are clever hey?
Hammersteyn
April 1, 2014 at 08:14
If true in a way there’s a silver lining. People are playing so much games these days government (LOL) has taken notice. Which means the amount of gamers may necessitate local servers.
Umar hearts Grandia
April 1, 2014 at 08:15
lol Government vows to get local servers for Titanfall
Kromas
April 1, 2014 at 08:15
Even google took notice.
Hammersteyn
April 1, 2014 at 09:12
hahaha
Jedi JJ
April 1, 2014 at 08:16
ANC: Promoting piracy since 2014.
Hammersteyn
April 1, 2014 at 09:10
Indeed
InsanityFlea
April 1, 2014 at 08:16
You trolls.
Unavengedavo
April 1, 2014 at 08:17
Nice try Geoff. This is as believable as the red and gold Springbok jerseys
Umar hearts Grandia
April 1, 2014 at 08:18
Either way….I’m still really depressed about the increase in price….
Brett Gunter
April 1, 2014 at 08:22
Ok, stupid question. What if I were to pay for a game on Steam while in SA, and for some unknown reason, happen to only download the game when I am on a trip overseas, would I then still be liable for the customs duties when the data was never “imported” into SA?
Also, “the gaming community can finally give back to South Africa for being allowed the freedom to enjoy their little hobby”???? 1. Little hobby? Someone needs an educational slap! 2. Finally give back? As if we haven’t paid VAT when purchasing PC’s or consoles, or in the “dark ages” of purchasing physical copies of games.
Brett Gunter
April 1, 2014 at 08:25
Ooooh! Even further to this, would I now be paying customs duties when downloading a F2P game such as Dota?
Gavin Mannion
April 1, 2014 at 08:28
AFAIK customs works on the cost of something? So no free games would still be free
Brett Gunter
April 1, 2014 at 16:50
Meh! I dont trust you anymore ;P
Brenz
April 1, 2014 at 08:23
I call April Fools, i hope…..
Jedi JJ
April 1, 2014 at 08:25
If this wasn’t an April fool’s joke they would’ve denied it by now.
Macethy
April 1, 2014 at 08:27
LOL April fools!
Rock789
April 1, 2014 at 08:27
If this is true, I hate the money-grubbing tax collectors so much!
If this is April Fools, I hate you guys so much!
Kensei Seraph
April 1, 2014 at 08:37
If this is true then I won’t be supporting charity (Humble Bundle) or Steam anytime soon.
If this is April Fools,… well then what Rock789 said.
almosthadme
April 1, 2014 at 08:43
Well done, had us going for a bit 🙂 Doubt this is true, SARS official spokespersons are:
SARS Spokesperson: Adrian Lackay – sarsmedia@sars.gov.za
SARS Deputy Spokesperson: Marika Muller – mmuller@sars.gov.za.
& google search for Undida Isidenge yields only two sites: Lazygamer & Mygaming 🙂
Rince
April 1, 2014 at 08:46
What the actual fuck?
Rince
April 1, 2014 at 08:46
PS. I hope this is an April Fools, if so, well played… If not, I’ll find you Geoff, and hurt you…
Estian Hough
April 1, 2014 at 09:01
“the gaming community can finally give back to South Africa for being allowed the freedom to enjoy their little hobby,”
WHAT 0.o… just…..
The Internet Warrior
April 1, 2014 at 09:20
Well then.
Sir Rants A Lot Llew. Jelly!!!
April 1, 2014 at 09:20
Jimmies unsuccessfully rustled. April fools
Ultimo_Cleric N7
April 1, 2014 at 09:39
April fools……..but if true, the government is really leaving me no choice:
YO HO YO HO, A PIRATE’S LIFE FOR MEEEEE!
Jim Lenoir (Banana Jim)
April 1, 2014 at 09:58
I’d gladly pay because every cent helps King Nkandla and his brood! All hail King Nkandla, Jacob the first, and his sea of children!
OSiRiS
April 1, 2014 at 10:30
“……the gaming community can finally give back to South Africa for being allowed the freedom to enjoy their little hobby,”
I’m sorry but I call bullshit 😛
For one, why would the government specifically address the gaming community. Im pretty sure they would have stated along the line of ” ALL digital purchases” or something, not just a specific group.
Two, because if this specific wording on a gaming news website.
Three, to get people riled up ( for nothing, since i am sure this is a joke ) for the above statement because since when do we need the governments permission to enjoy a certain hobby? Its like saying “ok if you start paying us we will allow you to continue with your hobby”. Is SA going communist on us?
And three, this article being published today of all days 😛
Double-O-Six and a half
April 1, 2014 at 10:49
“By charging customs duties and VAT on digital goods, the gaming
community can finally give back to South Africa for being allowed the
freedom to enjoy their little hobby,”
I find this statement to be arrogant, disturbing, patronising and more than a little offensive… This moron implies that we as gamers don’t contribute… If, as he implies these are ALL luxury goods and ONLY affluent people play games (or download digital content, like music, movies, video programming, e-books, etc,), then he is saying that “actually we don’t like that you ONLY contribute approximately 70% of your income in one form of tax or another” so we now insist that you actually pay more than those who don’t play games… or listen to music… or watch movies… or heaven forbid actually read…
This arrogance really fcuks me off, I ALREADY contribute a HUGE amount to this economy both in my direct taxes, which are exhorbitant, and in my purchases which help foster this economy and I really don’t need arrogant drivel from some SARS lacky… He replaces Lazee JZ on top of my list of guavament fcuktards for this week!!! /end rant
sentient
April 1, 2014 at 10:56
APRIL FOOLS MOTHER TRUCKEEEEEEERS! i mean.. it is a joke…. ri…right guys?
Brady miaau
April 1, 2014 at 11:28
I pay my fair share of tax. But customs duty?
Yes, when I still ordered Xbox games from Amazon.co.uk, they add customs duty, a seemingly random number I had to pay extra. Still cheaper than buying Xbox 360 games locally (Amazon.co.uk has , for two years now, stopped shipping to SA).
how will they know which games need customs duty?
“The free ride is over. When you import physical goods, you pay import duties VAT. These levies go towards building our country and strengthening our economy.” This is a fair statement, we do pay import tax, though hidden from us, at gaming shops.
Joe Black
April 1, 2014 at 11:41
I can tell you it’s already tough to buy brand new AAA titles at $60 a pop just because of the exchange rate. Add 14% VAT that is $68. Add duties on top of that we are probably talking about $75 per new AAA game. R790. I’m sorry… It’s too much. Again the government’s policies are killing business just on the chance that some of the action will come their way. They do not care about this economy.
Sir Rants A Lot Llew. Jelly!!!
April 1, 2014 at 12:23
You have no idea how happy i am this is an April fools joke
ToshZA
April 1, 2014 at 12:32
The worst part about all of this is that’s I’d totally believe it if it happened. Wouldn’t even be surprised.
The real April Fool’s joke is our government. Just saying.
Drizzt
April 1, 2014 at 12:53
If this is a hoax you should be careful, it could be a self fulfilling prophecy.
If one of the leeches from the government’s personal piggy bank get wind of this it could be implemented.
Dean_12
April 1, 2014 at 13:31
I almost lost my shitake at this but then remembered that it is April 1