South Africa - International Franchise Association

Several trade exhibition firms operate in South Africa. The Exhibition Association of
Southern Africa (EXSA) provides an overview of the Exhibitions and Trade Shows being
held in South Africa and can be found at: http://www.exsa.co.za.
You can also visit the Commercial Service South Africa’s website for links to upcoming
trade events and business service providers:
http://www.buyusa.gov/southafrica/
Pricing Return to top
Prices are generally market-determined, with the exception of petroleum products,
certain agricultural goods and prices administered by parastatals (government-owned
firms) such as the South African Post Office and Telkom. Provisions of the Sales and
Service Matters Act set pricing requirements and stipulate that prices cannot be evaded
through auction sales. The Act also requires that persons offering goods or services for
resale keep and retain records for possible recall, indicating purchase costs,
manufacturing costs, and selling prices. Changes in the fixed prices are published in the
South African Government Gazette.
South Africa applies a 14 percent Value Added Tax (VAT) (as opposed to General Sales
Tax (GST)) on all goods and services, except for some basic staple diet items. Exports
are zero-rated and no VAT is payable on imported capital goods. In Industrial
Development Zones (IDZ) there is a VAT suspension on imports and exports, provided
the finished product is exported. The South African Revenue Service (SARS), a division
of the South African Department of Finance/Treasury, administers VAT:
SARS
Tel: +27 (0)12 422 4000; Fax: +27 (0)12 422 5181
Website: www.sars.gov.za
Sales Service/Customer Support Return to top
In the South African consumer market, after-sales service is extremely important, especially
for providing technical and spare part services to prospective clients. Many South African
consumers will base purchasing decisions on reliable after-sales service for their purchases,
especially for high-end luxury goods such as electronic equipment. Appointing a central
distributor that stocks spare parts and provides maintenance and repair service is advisable
for existing brands and new brands breaking into the market. As the South African market
has opened up and become more competitive, South African consumers have become more
and more concerned about quality and after-sales service. Foreign companies that bring
strong customer support systems to this market will find themselves with a competitive edge.
Consumers may direct queries and complaints to the South African National Consumers
Union (SANCU), http://www.sancu.co.za
Protecting Your Intellectual Property Return to top
Several general principles are important for effective management of intellectual
property (“IP”) rights in South Africa. First, it is important to have an overall strategy to
protect your IP. Second, IP is protected differently in South Africa than in the U.S.
Third, rights must be registered and enforced in South Africa, under local laws. Your