- The planned 0.5% VAT rate increase set for 1 May 2025 has been reversed.
- SARS will adjust to accommodate this change for VAT vendors and consumers.
- Vendors and consumers had prepared for the increase amid uncertainty.
- The reversal was announced in a media statement and Government Notice No 6157.
- VAT vendors should stop implementing the rate change and charge 15% VAT.
- Vendors have a limited time to adjust systems and report VAT at 15%.
- If unable to revert to 15% due to system changes, report at 15.5% until adjustments are made by 15 May 2025.
- Transactions at 15.5% must be reported in specific VAT return fields.
- Refunds of the 0.5% rate must be reported in the same fields.
- VAT return declarations will be considered in verifications or audits.
- VAT returns will use the 15% rate from 1 May 2025.
- Vendors who implemented changes should reverse them before 1 May 2025.
- Commissioner Kieswetter acknowledges the complexity and confusion and aims to provide clarity.
Source: sars.gov.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.
