Author Topic: VAT ... 15%  (Read 5908 times)

Terblanche

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VAT ... 15%
« on: August 22, 2019, 07:14:03 pm »

Please tell me that you (FSDT / Virtuali) are VAT registered in South Africa in order to charge 15% and if you are, could we please have your VAT registration number?
We have never, as in ever, been charged VAT for any software purchased via the web.

Hope to hear from you soonest.
Terblanche Jordaan
From: Cape Town (FACT)

virtuali

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Re: VAT ... 15%
« Reply #1 on: August 22, 2019, 09:48:49 pm »
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Please tell me that you (FSDT / Virtuali) are VAT registered in South Africa in order to charge 15% and if you are, could we please have your VAT registration number?

Where we are registered in doesn't matter, since you are not purchasing from us, you are purchasing from Digital River, and I'm sure (them being one of the largest e-commerce providers in the world), they surpass the minimal threshold of annual sales in South Africa after then VAT must be applied:

We have never, as in ever, been charged VAT for any software purchased via the web.

Now you have, this just changed a few months ago:

https://www.bdo.global/en-gb/microsites/tax-newsletters/indirect-tax-news/issue-1-2019/south-africa-vat-on-e-services-in-south-africa

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Starting from 1 April 2019, foreign suppliers of e-services, group companies, and intermediaries who facilitate the supply of e-services in South Africa may be required to register for VAT if the total value of taxable supplies exceeds ZAR 1 million over a 12-month period.

Terblanche

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Re: VAT ... 15%
« Reply #2 on: August 23, 2019, 12:47:00 am »
I find it extremely 'strange' to say the least ...
Whoever Digital River is, they must be something extraordinary - because I just purchased something from AMAZON and no, I didn't pay any VAT. Oh, and earlier I bought something from ORBX and then SimMarket and guess what, I didn't pay VAT there either. But Digital River has a VAT number in SA. WHAO.

I've purchased KORD via Addon Manager because of the discount for having the previous version but in future I'll just stick to SimMarket.

Thanks for the feedback.
Now back to KORD v2 because I have some floating buildings and I'm trying to figure out why ...
Terblanche Jordaan
From: Cape Town (FACT)

virtuali

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Re: VAT ... 15%
« Reply #3 on: August 23, 2019, 02:28:28 am »
I find it extremely 'strange' to say the least ...

I don't know what you are trying to say or imply. Are you suggesting Digital River is acting outside the law ? The communication we got from them about VAT in South Africa, said this was changed in July 20th, so it's very recent.

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Whoever Digital River is, they must be something extraordinary - because I just purchased something from AMAZON and no, I didn't pay any VAT. Oh, and earlier I bought something from ORBX and then SimMarket and guess what, I didn't pay VAT there either. But Digital River has a VAT number in SA. WHAO.

Maybe you don't know about Digital River, but I assure you its WAY bigger than OrbX and Simmarket combined so, either they both don't reach the threshold for VAT registration, so they don't have to comply with it, or they just haven't done it yet, possibly because the law came into effect in the middle of the year, while the calculation to reach the threshold is made annually, so I guess during this year, not everybody must comply with it.

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Now back to KORD v2 because I have some floating buildings and I'm trying to figure out why ...

Another user reported a similar problem, and it's was caused by a problem with some OrbX libraries.