Why does Valve charge me VAT when I am not based in the US?

[Launch]

I'm from South Africa. But I see my game purchases includes VAT. Its impossible to reach valve support to ask them directly what is going on, hence Im asking here.
Can someone verify if Valve is registered in South Africa and under what name are they trading, and why is that name not on the invoice they issue me ?

[cSg|mc-Hotsauce]

What country was your account created in?

What billing address is tied to the payment details?

[Launch]

My address has always been an address in South Africa.

[Brujeira]

İlk olarak Launch tarafından gönderildi:

My address has always been an address in South Africa.

Well, that'll be why then. That VAT isn't going to the US government, it's going to your government and being paid at their rate.

[Ogami]

"To address base erosion and profit shifting, foreign businesses providing electronic services to South African consumers have been required to register for VAT since 1 June 2014. In South Africa VAT applies to the supplies of electronic services made by foreign suppliers to South African customers."

South Africa uses VAT for digital purchases since 2014 on the consumer level.
15% to be exact.

[Falsus Te Deum]

https://www.avalara.com/vatlive/en/country-guides/africa-and-middle-east/south-africa/south-african-vat-electronic-services.html

Could be about this?

Ninjad

[Bee🐝]

Uhm...because we pay VAT in SA...I just can't some days...

[Launch]

Thanks Ogami. I had no idea about this law.
Cant' believe the SA government actually got some providers to comply with this.

[Brujeira]

İlk olarak Launch tarafından gönderildi:

Thanks Ogami. I had no idea about this law.
Cant' believe the SA government actually got some providers to comply with this.

It's law. It's usually a straight choice of collect the tax or get blocked from doing business there.

[Bee🐝]

İlk olarak Launch tarafından gönderildi:

Thanks Ogami. I had no idea about this law.
Cant' believe the SA government actually got some providers to comply with this.

Wow...just...It's law - everything you buy in SA has VAT on it (well except certain essentials). It's been like that...forever (edit actually 1991, but still) - have you never noticed?

[Satoru]

https://partner.steamgames.com/doc/finance/taxfaq

South Africa charges 15% on all digital purchase via VAT that's why its included in the price as per law

[Launch]

İlk olarak Beezzi tarafından gönderildi:

İlk olarak Launch tarafından gönderildi:

Thanks Ogami. I had no idea about this law.
Cant' believe the SA government actually got some providers to comply with this.

Wow...just...It's law - everything you buy in SA has VAT on it (well except certain essentials). It's been like that...forever (edit actually 1991, but still) - have you never noticed?

No most of my international service suppliers don't charge SA VAT. It seems that only the giant service providers do such as Valve Corp and Amazon.com.

[Satoru]

İlk olarak Launch tarafından gönderildi:

İlk olarak Beezzi tarafından gönderildi:

Wow...just...It's law - everything you buy in SA has VAT on it (well except certain essentials). It's been like that...forever (edit actually 1991, but still) - have you never noticed?

No most of my international service suppliers don't charge SA VAT. It seems that only the giant service providers do such as Valve Corp and Amazon.com.

That would be a violation of SA law since payment of VAT is required for companies that do over 50k in business

http://www.sataxguide.co.za/south-africa-vat-essentials/

[Fang]

"Yes, and if you don't pay up, you'll go to prison for tax evasion! I'm crazy enough to take on Batman, but the IRS? Noooo thank you."

[Bee🐝]

İlk olarak Launch tarafından gönderildi:

İlk olarak Beezzi tarafından gönderildi:

Wow...just...It's law - everything you buy in SA has VAT on it (well except certain essentials). It's been like that...forever (edit actually 1991, but still) - have you never noticed?

No most of my international service suppliers don't charge SA VAT. It seems that only the giant service providers do such as Valve Corp and Amazon.com.

Companies who operate in SA have to apply VAT. Big and small. It's not optional and it doesn't matter if they're an online-only business from another country - their product is being sold in SA, therefore, the same laws apply.

If your suppliers aren't paying VAT there's something really shady going on.

İlk olarak Fang tarafından gönderildi:

"Yes, and if you don't pay up, you'll go to prison for tax evasion! I'm crazy enough to take on Batman, but the IRS? Noooo thank you."

Truly wise words.

[Cathulhu]

İlk olarak Fang tarafından gönderildi:

"Yes, and if you don't pay up, you'll go to prison for tax evasion! I'm crazy enough to take on Batman, but the IRS? Noooo thank you."

The IRS even got Al Capone.