It has been published on 26 December 2013 that the plans to implement South African GST on digital supplies have been delayed from January 2014 until at least the start of April 2014.
In a change to the Taxation Laws Amendment Act, the South African Revenue Service (SARS) confirmed it will not be in a position to levy Goods and Services Tax at 14% on foreign providers of steamed music, video or eBooks etc. to consumers. Plans to start taxing digital B2C supplies were drafted in 2013 following the loss by SARS of a test case against Microsoft Ireland. The company had been providing ‘Cloud’ services to South African consumers with neither Irish VAT nor South African GST.
