Vat implications on mobile apps

are there any vat implications on mobile applications in south africa? please make reference to the vat act if possible. if not, how are the mobile applications currently treated?.

Please clarify what you mean exactly? Please explain your type of business.

Its a private company that has other trades but looking to expand its services by developing an app concept for customer loyalty programs that customers can use on line, so what I would like to know is "what are the vat implications of developing this mobile app".

You would be required to register the company for VAT, based on the app being a service which will be rendered in South Africa. Based on this you will therefore also be able to claim back expenses incurred when you start up the business.