South Africa details foreign electronic services to be subject to VAT

As South Africa implements VAT on foreign supplies of electronic services to its consumers, the National Treasury has confirmed which services are affected by the changes.

• Gaming: electronic, internet and interactive games, including games of chance and gambling
• Online auctions
• Ebooks: including audio/visual variations
• On-line learning: education; tuition; webcasts etc for commercial purposes
• Subscriptions or micro-payments for social networking sites, App’s, journals, webinars etc

It is currently planned that South African VAT will be charged at 14% on these services from 1 July 2014. This follows a number of VAT delays since the start of this year.

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