Quote:
Originally Posted by Lynx-lynx
Geoff does Sth Africa get the foreign companies in foreign countries to collect the GST irregardless of how small the purchase is?
|
I think so, but someone from South Africa might know better.
Quote:
|
Irrespective of monetary size of purchase how does the SA Gov't monitor the purchase and then ensure that the company hands the money over to it, particularly withregard to say an ebook or music or audio book?
|
It is not a matter of monitoring every single company, from what I understand the South African govt. just passed a local law requiring foreign companies to register for VAT. There is no way to enforce that law outside South Africa of course, but most of the big foreign companies chose to follow the local law anyway.
The vast majority of online purchases are through a small number of big foreign companies, so if the idea is to increase tax revenue then it is worth doing as long as those few big companies get on board. The South African case shows that they will.