The transition from a 14% to 15% VAT rate
The South African Minister of Finance (at the time), Malusi Gigaba introduced an amended Value-Added Tax (VAT) rate on 21 February 2018 in the annual Budget speech. The increase is lower than predicted from 14% to 15% with an effective date 1 April 2018.
From the effective date, 1 April 2018, vendors will have to ensure that they comply with the change in rate. Vendors should carefully consider the complexities that could arise in system set-ups and complex transactions.