Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Meta's smart glasses are officially coming to South Africa - Mark Zuckerberg

      Meta’s smart glasses are officially coming to South Africa

      2 October 2026
      Eskom has a R1.20/kWh offer for bitcoin miners

      Eskom has a R1.20/kWh offer for bitcoin miners

      2 October 2026
      Usaasa consults on universal access as its abolition stalls

      Usaasa consults on universal access as its abolition stalls

      2 October 2026
      Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger - Shane Chorley

      Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger

      2 October 2026
      Home affairs pulls the plug on the green ID book - Leon Schreiber

      Home affairs pulls the plug on the green ID book

      1 October 2026
    • World
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
      AMD is now worth a trillion dollars - Lisa Su

      AMD is now worth a trillion dollars

      22 September 2026
      Anthropic weighs new model launch to blunt OpenAI's Astra surge - Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman

      Anthropic weighs new model launch to blunt OpenAI’s Astra surge

      21 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      W&W | Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
    • Opinion
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Regulating AI: apply the laws we have first - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » These SA tech companies will absorb the VAT hike

    These SA tech companies will absorb the VAT hike

    By Duncan McLeod26 March 2018
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Image: Steve Buissinne

    Although the vast majority of South Africa’s telecommunications and technology companies will pass on the 1% increase in the value-added tax rate — from 14% to 15% — from 1 April, some are bucking the trend and absorbing the increase on behalf of their clients.

    MTN South Africa said last week that it won’t pass on the higher VAT charges to its prepaid customers — although it is hiking some prepaid prices as part of an “overhaul” of the prepaid portfolio.

    MTN significantly increased the per-minute charges on certain “legacy” prepaid calling plans, though the company said the increases will only affect a subset of prepaid users and are in no way related to the VAT increase.

    Spokeswoman Jacqui O’Sullivan said the price increase was related to a planned overhaul of the company’s prepaid tariff plans, which will be phased in over the coming months.

    We don’t believe that the VAT increase is an adequate trigger for a price increase. There are a number of factors we do take into consideration when reviewing our pricing

    “Customers making use of prepaid will not see a simple VAT increase on prepaid products,” O’Sullivan said. “Instead, MTN is sticking with the portfolio overhaul roadmap that was planned ahead of the VAT changes. Our post-paid base, which went through this portfolio transformation in 2018, will see a simple 1% VAT increase (on 1 April).”

    Hosting company Hetzner, meanwhile, said on Monday that its customers’ hosting fees won’t be affected by the VAT increase. “After weighing up this important issue, Hetzner has decided to absorb the increase in VAT and not pass it onto our customers, keeping our pricing unchanged for as long as we can,” the company said in a statement.

    “We don’t believe that the VAT increase is an adequate trigger for a price increase. There are a number of factors we do take into consideration when reviewing our pricing.”

    It warned, however, that as global input costs continue to rise, it “might not be able to avoid price adjustments indefinitely”.

    “But we prefer to look at price increases tied to improvements in our service. If an adjustment is required in the future, we will carefully consider the value we offer our customers.”

    DStv

    MultiChoice will also not hike prices on 1 April because of the increase in the VAT rate, though its regular annual adjustments will kick in on that date. The price increases were announced prior to government revealing that VAT would be rising on the same date.

    The price of DStv Premium, MultiChoice’s top-end bouquet, will rise by 2.5% on 1 April 2018 — from R789/month to R809/month. Mid-tier bouquets, however, will see bigger increases, with DStv Compact Plus (formerly Extra) to rise by 4.1% from R489 to R509/month and DStv Compact going up by 5.5% to R385/month from R365 now. The lower-end DStv Family bouquet will see the biggest price increase — 6% — with the monthly fee rising from R235 to R249/month. DStv Access and EasyView remain unchanged at R99 and R29/month respectively.

    Telecommunications provider Switch Telecom, meanwhile, said earlier this month that it has decided to reduce the impact of the VAT hike by effectively reducing its service fees.

    “Switch Telecom will be reducing our standard monthly services fees and once-off charges by 1% as of 1 April 2018. Our clients will still pay the same VAT-inclusive rate for both standard monthly service fees and once-off charges.”

    Call charges will remain at the same VAT-exclusive amount but will be subject to the new rate of 15%, it said. — (c) 2018 NewsCentral Media

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Hetzner Jacqui O'Sullivan MTN MTN South Africa Switch Telecom top
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleOnly a tech revolution will restore privacy
    Next Article Gold casts of Mandela’s hands sell for R117m – in bitcoin

    Related Posts

    Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger - Shane Chorley

    Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger

    2 October 2026
    MTN loses bid to halt US Anti-Terrorism Act claims

    MTN loses bid to halt US Anti-Terrorism Act claims

    29 September 2026
    Woan's ghost exorcised - Solly Malatsi

    Woan’s ghost exorcised

    25 September 2026
    Company News
    Huawei sets out its vision for intelligent government at GovTech 2026

    Huawei sets out its vision for intelligent government at GovTech 2026

    2 October 2026
    A simple guide to modern laptop processors for small businesses - Incredible

    A simple guide to modern laptop processors for small businesses

    2 October 2026
    Cloud and AI won't deliver value on their own, executives warn

    Cloud and AI won’t deliver value on their own, executives warn

    1 October 2026
    Opinion
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026
    Regulating AI: apply the laws we have first - Dirk de Vos

    Regulating AI: apply the laws we have first

    21 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Meta's smart glasses are officially coming to South Africa - Mark Zuckerberg

    Meta’s smart glasses are officially coming to South Africa

    2 October 2026
    Eskom has a R1.20/kWh offer for bitcoin miners

    Eskom has a R1.20/kWh offer for bitcoin miners

    2 October 2026
    Usaasa consults on universal access as its abolition stalls

    Usaasa consults on universal access as its abolition stalls

    2 October 2026
    Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger - Shane Chorley

    Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger

    2 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter