Title page for ETD etd-07202011-142323


Document Type Master's Dissertation
Author Hay, Salome
Email salomehay@gmail.com
URN etd-07202011-142323
Document Title An international comparative study on value-added tax implications of activities in virtual worlds from a South African point of view
Degree MCom
Department Taxation
Supervisor
Advisor Name Title
Prof M Cronje Co-Supervisor
Mr T L Steyn Supervisor
Keywords
  • Suid Afrika
  • belasting op toegevoegde waarde
  • value-added tax
  • South Africa
Date 2011-04-07
Availability restricted
Abstract
The growth of electronic commerce is expected to continue along-side the development of the Internet. Virtual worlds are the new phenomenon in cyberspace. Virtual worlds provide either structured adventures to the participants or the basic environment and platform for real life activity. The users of these virtual worlds transact millions of dollars of goods and services per daily.

Although a few countries have researched the value- added tax or goods and services tax consequences of transactions in virtual worlds, no research of this kind exists in South Africa. This study extends prior research by performing a critical analysis of the value-added tax treatment from a South African VAT perspective.

The main purpose of this study is to evaluate if the activities conducted by persons in virtual worlds will constitute an enterprise as defined in the Value-Added Tax Act No.89 of 1991 of South Africa.

This study evaluates previous international research and provides a new perspective from a South African point of view.

The study was limited to investigating whether the transactions of South African residents will constitute an enterprise and therefore is subject to value-added tax. The registration requirements of residents qualifying were not considered.

The research concluded that value-added tax can be charged on virtual world transactions involving real money, when the persons involved are conducting an enterprise as defined in the Value-Added Tax Act No.89 of 1991 of South Africa.

AFRIKAANS : Daar word verwag dat die groei van elektroniese handel saam met die ontwikkeling van die Internet sal voortduur. Virtuele węrelde is die nuutste verskynsels op die węreldwye web. Hulle verskaf óf gestruktureerde avonture aan deelnemers óf die basiese omgewing en platvorm vir werklike-lewe aktiwiteite. Die gebruikers van hierdie virtuele węrelde verhandel daagliks miljoene dollars se goedere en dienste.

Alhoewel verskeie lande al die gevolge van belasting op toegevoegde waarde of goedere en dienste van transaskies in virtuele węrelde nagevors het, bestaan daar nog geen navorsing in Suid-Afrika nie. Hierdie studie brei vorige navorsing uit deur ‘n kritiese analise van belasting op toegevoegde waarde uit ‘n Suid-Afrikaanse BTW perspektief te beskou.

Die hoofdoel van hierdie studie is om te evalueer of die aktiwiteite wat deur persone in die virtuele werelde uitgevoer word, sal neerkom op ‘n onderneming soos gedefiniëer in die Wet op Belasting op Toegevoegde Waarde nr.89 van 1991 van Suid-Afrika. Die studie evalueer vorige internasionale navorsing en verskaf ‘n nuwe perspektief vanuit ‘n Suid-Afrikaanse oogpunt.

Die studie was beperk tot die vraag of die transaksies van inwoners van Suid-Afrika neerkom op ‘n onderneming en daarom onderhewig is aan belasting op toegevoegde waarde. Die registrasie vereistes van kwalifiserende inwoners was nie in ag geneem nie.

Daar is tot die gevolg gekom dat belasting op toegevoegde waarde op transaksies in virtuele węrelde, wat regte geld betref, gehef kan word waar die persoon ‘n onderneming bedryf soos gedefiniëer deur die Wet op Belasting op Toegevoegde Waarde Nr.89 van 1991 van Suid-Afrika.

© 2010, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

Please cite as follows:

Hay, S 2010, An international comparative study on value-added tax implications of activities in virtual worlds from a South African point of view, MCom dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07202011-142323/ >

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