- The National Treasury is proposing to make all goods and services supplied by private schools VAT-exempt from January 2026, forcing VAT-registered schools to deregister.
- Deregistration could trigger a significant once-off VAT payment on the value of school assets, creating cashflow problems.
- Schools would lose the ability to recover VAT on future expenses, increasing ongoing costs.
- The proposed changes could negatively impact schools’ ability to maintain facilities, hire staff, and invest in infrastructure.
- Legal experts and law firm Bowmans have raised concerns and urged the government to reconsider the proposal to avoid harming the education sector.
Source: thesouthafrican.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.
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