Michaela Merz

South Africa – electronic services taxation as from 1 of April

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Electronic service regulation provides detailed definition of electronic services. There are 7 different categories:

Educational services

The supply of any—
(a) distance teaching programme;
(b) educational webcast;
(c) internet-based course;
(d) internet-based education programme; or
(e) webinar,
if the person making the supply of the educational services is not regulated by an educational authority in that export country.

Games and games of chance
The supply of any—
(a) internet-based game, including any—
(i) electronic game; or
(ii) multiplayer role-playing game;
(b) interactive game, where such interactive game is a—
(i) game of chance;
(ii) game where the result is influenced by the skill of the player; or
(iii) game which is a combination of chance and skill; or
(c) electronic betting or wagering, where such electronic betting or wagering constitutes participation in the activities contemplated in sections 4(1) and (2) of the National Gambling Act, 2004 (Act No. 7 of 2004)

Information system services
The provision of any information system services

Internet-based auction service
The supply of an internet-based auction service facility

Maintenance services
The administration, maintenance and technical support of or in relation to any—
(a) blog;
(b) database;
(c) information system;
(d) information system services; or
(e) web site.

Miscellaneous services
The supply of any—
(a) e-book, which for the purposes of this regulation means, any—
(i) digitised content of any book; or
(ii) electronic publication;
(b) film, which for the purposes of this regulation means, any—
(i) broadcast not simultaneously broadcast over any conventional television network in the Republic;
(ii) documentary;
(iii) home-made video;
(iv) live streaming performance;
(v) movie;
(vi) music video;
(vii) program;
(viii) television series; or
(ix) video clip,
and any right to view any item listed in this regulation;
(c) images, which for the purposes of this regulation means, any—
(i) desktop theme;
(ii) photographic image;
(iii) pictorial image; or
(iv) screensaver,
and any right to view any item listed in this regulation;
(d) music, which for the purposes of this regulation means, any—
(i) audio clip;
(ii) broadcast not simultaneously broadcast over any conventional radio network in the Republic;
(iii) jingle;
(iv) live streaming performance
(v) ringtone;
(vi) song; or
(vii) sound effect,
and any right to listen to any item listed in this regulation;
(e) software, including—
(i) application software;
(ii) system software; or
(iii) plugins,
and any update to any software listed in this regulation. 

Subscription service
Any subscription service to any—
(a) blog;
(b) database;
(c) information system services;
(d) journal;
(e) magazine;
(f) newspaper;
(g) games;
(h) internet-based auction service;
(i) periodical;
(j) publication;
(k) social networking service;
(l) webcast;
(m) webinar;
(n) web site;
(o) web application; or
(p) web series

VAT Alert ESS Jan 14

For further information please feel free to contact Charles De Wet:
Office: +27 (21) 529 2377 or charles.de.wet@za.pwc.com
PricewaterhouseCoopers, Cape Town

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