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New South African taxes in Netflix and Internet services



As reported Business TechThe National Treasury recently published an amendment to the electronic services regulation.

Effective April 1, 2019, South African customers apply to free distributors and check whether their services are "electronic services" and that VAT is in South Africa.

Baker & McKinsey says that an electronic agent, electronic communications or all services distributed via the Internet are now available for Watt's use.

"The services envisaged in the distribution are mainly defined as the automated system and low human intervention in the absence of information technology.

"Only a limited number of services offered above will be expelled from the definition of electronic services, ie, services of foreign service provider exporting countries, telecommunication services."

The new law control is amazing and added that the following services are included.

  • Software Subscription Services
  • Using software in a company in South Africa is an electronics company with an overseas company (excluding exception)
  • Broadcasting
  • Cloud Computing
  • Advertising services
  • Gaming
  • Any Reservation Service through Online Platform

What do you mean?

Business Tech, Zelen Moonsmie, Baker & McKenzie VAT Expert said that regulatory controls are required to register gambling, such as Nabilux, Facebook and Google.

"These companies must deliver their services through electronic means and the total value of its services must exceed $ 12 million."

This extra tax will have to pay South African customers for a higher price.

"In addition to taxes in the form of higher prices as the VAT tax for consumers, the consumption in taxes – consumption tax," he said.

"Depending on the price of low-cost discount, like i Amazon and Google, their electronic registration will not have a huge influence on their VAT registration.

Baker McKenzie warned all foreign business operators in South Africa to sell their electronic agents, electronic communications or internet.

"When overseer fails to register VAT, foreign service providers have a huge financial impact because SARS fines and interest payments will create accidents.

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