- VAT will increase by 0.5% on May 1, 2025.
- The VAT rate will reach 16% in the 2026/27 financial year.
- The increase may affect businesses that account for VAT on their supplies.
- The increased rate will likely apply to all supplies of goods or services made on or after May 1, 2025.
- The time of supply rules determine when a supply is deemed to take place.
- An invoice must be issued or payment received to trigger a liability for tax at the old rate.
- Supplies made before May 1, 2025, will be subject to the old rate.
Source: moonstone.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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