The Minister of Finance announced the value-added tax (VAT) rate increase in his budget speech on 21 February 2018. The standard rate of VAT will change from 14% to 15% with effect from 1 April 2018.
This means that from 1 April 2018, all taxable goods or services supplied by vendors, goods imported, as well as certain services supplied by non-residents to residents for non-taxable or private use (imported services), are subject to the VAT rate of 15%.
Some of the most important aspects to consider as a result of the increase in the VAT rate are briefly discussed. This pocket guide is not intended to be used as a legal reference.
For more information refer to the FAQs that are available on the SARS website: www.sars.gov.za. Should you have an enquiry which is not addressed in this pocket guide or in the FAQs, you can send your enquiry to [email protected]
Date of issue: 21 February 2018