Results 1 to 7 of 7

Thread: Is VAT included in the in-app token/coin purchased in a phone applications

  1. #1
    New Member
    Join Date
    Oct 2019
    Location
    Jahannesburg
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Is VAT included in the in-app token/coin purchased in a phone applications

    I am confused ! developing a mobile phone application that will require users to load their account with the app's coin by using card or bank transfer. This coin is used as gift on this platform *and the coin is also redeemable . My questions are;

    1. Do I have to add VAT *to the price of the coin and
    2. I searched and I am yet to see a platform/app where money or token/coins used as gift *are redeemable as cash deposit. is there any law anywhere against redeeming gift as cash deposit?

    I need serious help with these questions.
    Kind regards,

  2. #2
    Diamond Member
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 Posts
    "The Apps Coin" - what in the world does that mean?

  3. #3
    New Member
    Join Date
    Oct 2019
    Location
    Jahannesburg
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Quote Originally Posted by adrianh View Post
    "The Apps Coin" - what in the world does that mean?
    I wrote App's coin which means the coin that is purchasable on the app. Just like coins are purchased to play games on game apps.

  4. #4
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    It sounds like you should think of your coin as currency, or a virtual equivalent of a gift voucher.

    Gift vouchers have a monetary value, but AFAIK the VAT is raised in the sale of the goods being purchased (that are being paid for by the gift voucher), not in the sale of the gift voucher.

  5. #5
    Diamond Member
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 Posts
    As far as I am aware only an entity that is registered for VAT can charge VAT and thus have to pay said VAT over.

    What about international transactions? VAT is region specific and subject to different rules in different places - how would it be paid over?

  6. #6
    New Member
    Join Date
    Oct 2019
    Location
    Jahannesburg
    Posts
    4
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Thanks a lot for your insightful response. I'll like to know about this.

    2. I have searched and I am yet to see a platform/app where money or token/coins used as gift *are redeemable as cash deposit. is there any law anywhere against redeeming gift as cash deposit?

    Thanks alot

  7. #7
    Diamond Member
    Join Date
    Mar 2010
    Location
    Cape Town
    Posts
    6,329
    Thanks
    426
    Thanked 978 Times in 795 Posts
    If you can explain to me exactly and in detail what you want to do then I can ask my brother. ( You can PM me if it is confidential. )

    My brother was the MD of an international bank and he is still on national and international financial boards.

Similar Threads

  1. Replies: 1
    Last Post: 13-Nov-16, 09:21 AM
  2. Why South Africans Suck as Clients, Myself Included
    By Norri in forum General Business Forum
    Replies: 12
    Last Post: 24-Feb-12, 01:22 PM
  3. Business Plans: The Financials that should be included
    By Citizen X in forum General Business Forum
    Replies: 7
    Last Post: 01-Jan-12, 10:39 AM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •