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
      TCS | Piet le Roux on Sakeliga's fight with Icasa over BEE

      TCS | Piet le Roux on Sakeliga’s fight with Icasa over BEE

      13 November 2026
      Lawyer who backs 30% rule says Sakeliga has Icasa cornered - Piet le Roux

      Lawyer who backs 30% rule says Sakeliga has Icasa cornered

      13 November 2026
      SA firms are all-in on AI, but most can't prove it pays - Arthur Goldstuck

      SA firms are all-in on AI, but most can’t prove it pays

      13 November 2026
      Microsoft outage drags past 15 hours, hitting SA companies hard

      Microsoft outage drags past 18 hours, hitting SA companies hard

      13 November 2026
      Oppo's South African plan: forget market share, sell premium phones - Sam Zhang

      Oppo’s South African plan: forget market share, sell premium phones

      13 November 2026
    • World
      The internet is roasting Jensen Huang with his own GPUs

      The internet is roasting Jensen Huang, using his own GPUs

      11 November 2026
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      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
    • TCS
      W&W | The AA’s Bobby Ramagwede on a car industry running out of road

      W&W | The AA’s Bobby Ramagwede on a car industry running out of road

      12 November 2026
      TCS | Pick n Pay fights back in online grocery wars - Vince Viviers

      TCS | Pick n Pay fights back in online grocery wars

      11 November 2026
      TCS | Nomvuyiso Batyi on the battle over Sim registration - Nomvuyiso Batyi

      TCS | Nomvuyiso Batyi on the battle over Sim registration

      9 November 2026
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
    • Opinion
      Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

      Icasa’s Sim rules need a privacy backstop

      5 November 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
    • Company News
      • 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
      • Fintech and payments
      • 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

    TCS | Piet le Roux on Sakeliga's fight with Icasa over BEE

    TCS | Piet le Roux on Sakeliga’s fight with Icasa over BEE

    13 November 2026
    Lawyer who backs 30% rule says Sakeliga has Icasa cornered - Piet le Roux

    Lawyer who backs 30% rule says Sakeliga has Icasa cornered

    13 November 2026
    Vodacom targets satellite-to-phone service in South Africa next year

    Vodacom targets satellite-to-phone service in South Africa next year

    10 November 2026
    Company News
    The next digital channel in South Africa is the phone call - Teeoff Technologies

    The next digital channel in South Africa is the phone call

    13 November 2026
    Mitel bets on humans with debut of Mitel WX for the entire workforce

    Mitel bets on humans with debut of Mitel WX for the entire workforce

    12 November 2026
    You cannot change culture without changing how the business works - Change Logic, Trudie Keys

    You cannot change culture without changing how the business works

    12 November 2026
    Opinion
    Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026

    Subscribe to Updates

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

    Latest Posts
    TCS | Piet le Roux on Sakeliga's fight with Icasa over BEE

    TCS | Piet le Roux on Sakeliga’s fight with Icasa over BEE

    13 November 2026
    Lawyer who backs 30% rule says Sakeliga has Icasa cornered - Piet le Roux

    Lawyer who backs 30% rule says Sakeliga has Icasa cornered

    13 November 2026
    SA firms are all-in on AI, but most can't prove it pays - Arthur Goldstuck

    SA firms are all-in on AI, but most can’t prove it pays

    13 November 2026
    Microsoft outage drags past 15 hours, hitting SA companies hard

    Microsoft outage drags past 18 hours, hitting SA companies hard

    13 November 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