- South Africa will increase the standard VAT rate from 15% to 15.5% effective May 1, 2025, as announced by the Minister of Finance in the 2025 Budget Speech, marking the first VAT rate change since 2018.
- A further increase to a VAT rate of 16% is anticipated to take effect on April 1, 2026, contingent upon the passing of enabling legislation by Parliament within the next 12 months.
- While the VAT increase is expected to have a neutral impact on most VAT-registered businesses making taxable supplies, those involved in exempt or non-taxable supplies may incur additional costs due to the inability to reclaim VAT on related expenses, potentially affecting profit margins and pricing strategies.
Source Marosa
Latest Posts in "South Africa"
- South Africa Advances Toward Mandatory Peppol E-Invoicing and Real-Time VAT Reporting by 2028
- South Africa Moves Toward Mandatory E-Invoicing and Real-Time VAT Reporting Under SARS Modernisation
- South Africa to Launch Mandatory E-Invoicing and E-Reporting by 2028 Under New VAT Framework
- Court Upholds 15-Year Sentence for R3.6m VAT Fraud, Denies Juan Maritz’s Appeal
- South Africa’s E-Invoicing and Real-Time VAT: Transforming Tax Compliance and Business Transparency
