- The standard VAT rate will increase to 15.5 percent from May 1, 2025, and to 16 percent from April 1, 2026.
- Vendors must claim input VAT at the increased rate for supplies after the changes take effect, unless subject to specific rules.
- The time of supply rules govern which rate to apply for most transactions, but special rules apply to specified transactions.
- Rate increases must be reflected in VAT invoices for transactions exceeding the specified threshold.
- Vendors may not claim additional input VAT adjustments for supplies involving inventory purchased before the new rate, but may increase prices to recover costs.
Source: news.bloombergtax.com
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.
Latest Posts in "South Africa"
- VAT Treatment of Municipal Supplies to National or Provincial Government in South Africa
- South Africa Proposes VAT Law Amendments to Implement E-Invoicing and Digital Reporting Framework
- Umkhonto Wesizwe Party Protests VAT Increase Ahead of Finance Minister’s Budget Speech in Pretoria
- South Africa’s Move to Mandatory E-Invoicing: Draft Law, Public Consultation, and Future Plans
- Briefing document & Podcast: South Africa’s E-Invoicing and Real-Time Reporting Overhaul
