27 April 2025 – The Commissioner for the South African Revenue Service (SARS), Mr Edward Kieswetter, welcomes the agreement between the parties and court order in the matter relating to the 0.5 percentage point increase in value-added tax (VAT) that was originally announced to come into effect on 1 May 2025, along with other matters.
This is an important order that provides clarity to SARS to effectively and efficiently administer the VAT Act. It also has practical implication for consumers and VAT vendors charged with managing VAT. These are:
- The court’s order suspends the 0.5 percentage point increase that was originally announced to come into effect on 1 May 2015 and there is, therefore, no basis for VAT vendors to implement an increase of VAT rate.
- All vendors are urged to readjust their systems back to 15%.
- All consumers are urged to ensure that they are charged the correct VAT rate of 15%. In the unlikely event they are charged 15.5%, consumers should bring this to the attention of the vendor and ensure that this is resolved at the point of sale or otherwise by mutual agreement.
For further information, please contact [email protected].
