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South Africa Eyes Future VAT Hike, Stricter Tax Compliance Expected in 2026 Budget

  • No VAT increase is expected in South Africa’s 2026 Budget, but a future hike is likely.
  • Previous attempts to raise VAT in 2025 were delayed or blocked due to political negotiations and court orders.
  • Treasury is considering expanding the zero-rated food basket, but changes are unlikely without a VAT increase.
  • SARS will focus on stricter enforcement, increased audits, and faster verification processes to boost tax compliance.
  • New e-invoicing legislation and frameworks are being developed for real-time VAT reporting.

Source: businesstech.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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