Saturday , January 16 2021

Netflix and other South African taxes could have a price increase – Critical Hit

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It may not be cheap, but when most are available, South Africans have a pretty good market for online media coverage. Spotify is a great platform for the best music, Netflix continues to play regular TV shows, a dynamic dinosaur that has been shot in a tar pit and the Xbox Game Pass is a value that will save money.

It is not cheaper, but cheap for most homeowners who want to subscribe. Well, above all, it's as comfortable as the National Treasury, to analyze what it is and what it is worth to re-calculate as an electronic server that forces international services. This leads us to the fact that companies must register a South African VAT, which will allow consumers to make a separate payment to be subscribed to the end of the day.

"According to what is predicted by the definition, the services they provide are fundamentally automated and involve minimal human intervention and it is impossible to have no information technology," said Bailek and McKenzie.

There is only a limited number of services that can be provided by the above resources, excluding the definition of electronic services, regulated education services and telecommunications services for export of foreign services providers.

What services can be classified as an electronic service? Everything that is very much a component:

  • Software subscription services;
  • Use of software by a South African organization via an electronically-located company (unless the exclusion applies);
  • Broadcasting;
  • Cloud computing;
  • Advertising services;
  • Gaming;
  • Reservation services through any online platform.

"If these companies provide them with electronic services and the total value of these services exceed R1 million, they must pass a 12-month period," added Moonsamy.

The customer would bring tax added value at higher prices, the VAT, economically, the tax on consumption. It seems to me that behemoths like Amazon and Google still have a great deal of competition based on their discounted price capability, so that the VAT certificate of electronic services would not have any effect on the ability of customers to attract their income.

The new modified regulation will be live on April 1 and unfortunately there is no April Fool's joke scheduled.

Last update: November 29, 2018

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