Home Gaming Steam not charging local digital tax, yet

Steam not charging local digital tax, yet

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The gaming community was in a state of uproar earlier this year when it was revealed that we would start being charged the standard 14% VAT on digital purchases on the 1st of April this year.

As the deadline loomed it became obvious that the infrastructure wasn’t in place yet to implement and monitor this and the date was then pushed out to the 1st of June. When the 1st of June arrived sure enough the local Apple AppStore started charging a 14% VAT and we expected this to then be rolled out to all other digital distributors.

Well I just picked up a copy of Contraption Maker and just prior to my check out screen I was asked to confirm that I lived in South Africa, which made me think I was about to be charged, but then on the checkout screen itself the tax was set to $0.00

I continued with this purchase and sure enough no tax was taken. I then checked to see if the same happens if I used my local credit card and I had the same result. Granted I didn’t complete this purchase but you can see that I’m still not being taxed.

GuildTax

And it’s not only Valve who are still shirking this responsibility with Zoe purchasing some Kindle books last night and also not being charged digital tax. Personally I understand exactly why the government wants their pound of flesh from these sales and I can’t see Steam and Amazon not implementing the required change in the near future.

But for now if you want to save 14% on your digital games you still can.

What I do wonder about is that in South Africa it is illegal to show retail prices without VAT added, so when Steam does implement the tax are they breaking the local law by now showing the full price prior to checkout?

Last Updated: July 8, 2014

No Comments

  1. Alien Emperor Trevor

    July 8, 2014 at 12:03

    I noticed that too during the summer sale. Thank me! 14% VAT extra would have been a nasty addition.

    Reply

    • Kensei Seraph

      July 8, 2014 at 12:20

      Thanks Trevor for not allowing them to institute 14% VAT on Steam.

      Reply

      • Alien Emperor Trevor

        July 8, 2014 at 12:45

        You’re welcome.

        Reply

    • Admiral Chief Fairburne

      July 8, 2014 at 12:35

      Agreed

      Reply

  2. Spaffy

    July 8, 2014 at 12:11

    Visa ending in 5641. No to figure out the rest…

    Reply

    • Jim Lenoir (Banana Jim)

      July 8, 2014 at 12:15

      Rubs hands

      Reply

    • Umar Reborn XIV

      July 8, 2014 at 12:16

      Lol displaying the last four is completely safe, can’t really figure it out from the last four unfortunately. However,,,,that scrambled billing address. Team, enhance that picture!

      Reply

      • Spaffy

        July 8, 2014 at 12:20

        We can order a 100 pizzas delivered HAHAHA

        Reply

        • Umar Reborn XIV

          July 8, 2014 at 12:23

          Order the mildest of pizzas for him. Apparently the LG team can’t eat anything that isn’t hot

          Reply

          • Spaffy

            July 8, 2014 at 12:24

            Or extra anchovies on everything.

          • Gavin Mannion

            July 8, 2014 at 13:20

            ooo I love anchovies

          • Spaffy

            July 8, 2014 at 13:22

            you are not human.

          • Hammersteyn

            July 8, 2014 at 12:28

            I beg to differ.

      • VampyreSquirrel

        July 8, 2014 at 12:35

        lol! I could give you Gavin’s address… but not gonna… hahahaha.

        Reply

  3. Hammersteyn

    July 8, 2014 at 12:14

    WHAT no VAT??? Don’t worry guys. I got this, I’m phoning SARS right now.

    Reply

    • Spaffy

      July 8, 2014 at 12:23

      Hahaha. You wouldn’t.

      Right?

      Reply

      • Hammersteyn

        July 8, 2014 at 12:27

        There’s always that one guy the ruins it for everyone.Like the other dude that got Titanfall banned here. But it will never be me.

        Reply

        • HvR - Still dislikes Random.or

          July 8, 2014 at 12:41

          Well since he monitors everything Lazy related, that person is probably going to be the One Whom Shall Not Be Mentioned

          Reply

          • Spaffy

            July 8, 2014 at 12:56

            Eish. What’s happening there anyway? No updates?

          • Gavin Mannion

            July 8, 2014 at 13:20

            11th of August is the next court date/… so more updates since last time because nothing has changed 🙂

  4. Jim Lenoir (Banana Jim)

    July 8, 2014 at 12:15

    I went nuts during the summer sale, but I guess if they had added that 14% Nkandla fee, I would have said screw that, I aint buying anything.

    *shakes fist*

    Reply

  5. Hammersteyn

    July 8, 2014 at 12:17

    I don’t think GOG.com charges digital tax either.

    Reply

  6. Mossel

    July 8, 2014 at 12:18

    But will the games actually be 14% more expensive or will it just be adjusted to reflect the same price (roughly)?

    Reply

    • HvR - Still dislikes Random.or

      July 8, 2014 at 12:20

      Then Steam has to fork 14% of the price (and all their profits) over to the SA government.

      Reply

  7. FoxOneZA

    July 8, 2014 at 12:19

    I think it only affects local digital storefronts.

    Reply

  8. Kensei Seraph

    July 8, 2014 at 12:19

    I noticed when I bought Borderlands 2 on the last day of the Steam Sale that they didn’t charge VAT then either.

    Reply

    • Admiral Chief Fairburne

      July 8, 2014 at 12:37

      I though that because my Steam account is so damn old, that they forgot the VAT, and silently smiled…

      Reply

  9. Umar Reborn XIV

    July 8, 2014 at 12:19

    There was a game wanted to buy on PSN, was R300 odd, it is now R500 and something….yay

    Reply

  10. HvR - Still dislikes Random.or

    July 8, 2014 at 12:22

    I think it is only illegal if you do not specify that the price does not include any tax.

    Interesting though Isee the following on the bottom of the Steam page:
    “VAT included in all prices where applicable.”

    Reply

  11. Jim Lenoir (Banana Jim)

    July 8, 2014 at 12:43

    I really need new glasses, I read contraption maker as CONTRACEPTION MAKER. For a brief moment, I was wondering why would anyone want to play a game about making contraceptives?

    Reply

    • Spaffy

      July 8, 2014 at 12:57

      I don’t think this belongs here…

      Reply

    • Spaffy

      July 8, 2014 at 13:26

      But you did say you need new glasses…

      Reply

  12. MaD

    July 8, 2014 at 12:47

    I buy my games including steam games in Bitcoin….FU SARS

    Reply

  13. SARS

    July 8, 2014 at 13:22

    Read the terms, it says that the amount includes VAT where applicable, it is the customers responsibility to pay the VAT.

    Reply

    • Spaffy

      July 8, 2014 at 13:27

      SO, got some new mansion needing payment or a court case or two to pay for? You’ll get nothing out of me SARS!!!

      Reply

  14. Vlam

    July 8, 2014 at 13:25

    What if you have a steam voucher, will that be taxed as well or is it only credit cards? 😕

    Reply

  15. Sparacus

    July 8, 2014 at 21:32

    Not sure if it has already been mentioned below, but this “confirm that you live in” message goes as far back as 2007 (at least). I remember running into problems when trying to purchase something from Steam, when I was in the US, with my SA credit card.

    So it’s not really something new, but it also means they have the system checks in place and can throw the switch one day.

    Reply

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