Digital tax for ebooks in SA

Treasury published new electronic services regulations, detailing which digital products and services will be subject to 14% VAT and the good news is that digitised content of any book or electronic publication is included in the list of goods that will be impacted.

The regulations have been published by Finance Minister Pravin Gordhan for comment, and follow the proposals he made in his 2013 budget speech to impose VAT on foreign businesses who “sell e-books, music and other digital goods and services”. The regulations are called the Electronic Services Regulations and come into operation on a proposed date of 1 April 2014. Read more on www.businesstech.co.za