What’s New at SARS

25 April 2025 – The North West tax workshop schedules for May 2025 are now available.

25 April 2025 – Value-Added Tax Act, 1991

• Binding General Ruling 4 (Issue 4) – Apportionment methodology to be applied by a municipality

25 April 2025 – Value-Added Tax Act, 1991

• Binding General Ruling 4 (Issue 3) – Apportionment methodology to be applied by a municipality

25 April 2025 – Customs and Excise Act, 1964: Publication details for tariffs amendments notices R6152, R6153, R6154, and R6155, as published in Government Gazette 52564 of 25 April 2025, are now available.

25 April 2025 – The Commissioner for the South African Revenue Service (SARS), Mr. Edward Kieswetter has noted the Finance Minister, Mr. Enoch Godongwana’s decision to reverse the planned 0.5% VAT rate increase, which was initially set to take effect on 1 May 2025. This decision has significant practical implications for VAT vendors and consumers. As the administrator of all national government tax measures, SARS will ensure that the necessary adjustments are made to accommodate this change.

Additionally, the Commissioner acknowledges that vendors and consumers have invested in preparing for an increase in VAT during a period of uncertainty from Parliament’s deliberations and public comments.

As per the Minister’s media statement announcing the reversal of the increase in the VAT rate announcement and the publishing of Government Notice No 6157 of 24 April 2025, introducing in Parliament the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill, which is anticipated to  be  passed by Parliament,  the following measures will apply to all VAT vendors with effect from 1 May 2025:

1. VAT vendors who have not implemented the change in rate, they stop all development in this regard.
2. Vendors are expected to charge VAT at the rate of 15% and not 15.5% for the relevant goods and services as per the VAT Act.  Vendors may use limited time to adjust their systems accordingly. and report and pay the VAT.
3. Should a vendor not be able to revert to the 15% rate, due to complex system changes that may be needed, such supplies and purchases must be reported and accounted for at the 15.5% rate until such time that you are able to make the necessary system adjustments which should be completed by no later than 15 May 2025.
4. VAT transactions which were charged at 15.5% must be reported in field 12 (for output tax) and field 18 (for input tax) of the VAT return.
5. Adjustments in the form of refunds of the 0.5% rate to customers and from suppliers must equally be reported in fields 12 and 18 respectively.

6. The VAT return declarations made will be taken into consideration when verifications and/or audits on the affected VAT tax periods are conducted.
7. The VAT returns that are to be submitted will continue to calculate the VAT auto calculation using the 15% rate from tax periods or months commencing 1 May 2025.
8. Vendors who have already implemented both the rate changes and the Zero-Rating are encouraged to reverse those changes before 1 May 2025.

Commissioner Edward Kieswetter said that “he understands the complexity and the confusion that has resulted from this process. SARS will do its best to provide further clarity to create certainty of obligation for all vendors.”

For further information, please contact [email protected].

25 April 2025 – The KwaZulu-Natal mobile tax unit schedule for May 2025 is now available.

24 April 2025 – National Legislation

• Memorandum on Objects of Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2025

24 April 2025 – National Legislation

• Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B14—2025]

The Minister of Finance introduced the Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B14—2025] in the National Assembly on 24 April 2025

24 April 2025 – Value-Added Tax Act, 1991: Frequently Asked Questions: Increase in the VAT Rate from 1 May 2025, and the Pocket Guide on the VAT Rate Increase from 1 May 2025 withdrawn by the Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B14—2025] as tabled by the Minister of Finance in the National Assembly on 24 April 2025.

24 April 2025 – National Legislation: Notice of Introduction in National Assembly of Draft Rates Bill

• Notice of Introduction in National Assembly of draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2025, and Publication of Explanatory Summary of Bill, and Withdrawal of Notice

24 April 2025 – Customs and Excise Act, 1964: The tariffs amendments notices, scheduled for publication in the Government Gazette, relate to the following amendments:

With retrospective effect from 1 September 2024 up to and including 31 December 2024

• Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA)
• Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SACUM-UK EPA)

With retrospective effect from 1 January 2025

• Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA)
• Schedule No. 1, to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SACUM-UK EPA)

Publication details will be made available later

24 April 2025- The South African Revenue Service (SARS) wishes to inform that 31 May 2025 is the deadline to file the Employer’s Annual Declaration.

The Employer Annual Declaration process is the most important step that precedes the Personal Income Tax (PIT) Filing Season, which takes place later in the year. The information gathered during the Employer Annual Declaration period, the monthly declaration in EMP201 and reconciliation in EMP501 aids SARS to issue taxpayers with accurate auto-assessed or pre-populated Income Tax Return (ITR12).  Incomplete or incorrect information will make it difficult for employees to fulfil their tax obligations. Timely distribution of IRP5 and IT3 certificates by employers is extremely important as employees require these certificates to file their ITR12s returns during tax season.

SARS has introduced an enhanced version of the e@syfile™ Employer software (version 8.0) to enrich your filing experience. The latest version comes with improved capability, ensuring a smoother, more efficient reconciliation process. We encourage employers, tax practitioners, and payroll administrators to download the new e@syfile™ Employer v8.0 from the e@syFile download page on www.sars.gov.za before submitting the Employer Annual declarations.

It is important to note that all Employers are required and must submit their Employers Annual Declaration, including those Employers who are not economically active. SARS will hold all Employers liable for the non-compliance of the Employers Annual Declaration submission.

Employers can access the how-to videos” uploaded onto the SARS TV YouTube Channel.

For further information please contact [email protected].

23 April 2025 – Achieving our Vision of a smart, modern SARS with unquestionable integrity that is trusted and admired is of paramount importance. Pivotal to the delivery of our vision are our digital platforms and technology infrastructure. To provide clarity and certainty, make it easy for taxpayers and traders to comply with their obligations and building public trust and confidence, our technology assets must demonstrate the highest levels of availability, robustness, and security.

In accordance with our Vision and Strategic Objectives, which include modernising our systems to provide Digital and Streamlined online services, we are hard at work ensuring that our digital platforms and technology infrastructure are available, robust, and secure, by performing regular upgrades, enhancements, and maintenance.

Considering the above, SARS Digital platform maintenance is scheduled for:

Friday, 25 April 2025 from 18h00 to 22h00,

Saturday, 26 April 2025 from 20h00 to 22h00.

During this time, you may experience intermittent service interruption on our eFiling, Tax and Customs Digital Platforms.

23 April 2025 – SARS invites you to tender for the goods and/or services as detailed in RFP31/2024. The conditions in the SARS Chain Management Policy and the Regulatory Framework which governs tenders at SARS are applicable to this tender process.

22 April 2025 – The Western Cape mobile tax unit schedule for May 2025 is now available.

22 April 2025 – The Corporate Income Tax Guide has been updated to include additional clarity on Beneficial Ownership. As a member of the Financial Action Task Force (FATF), South Africa is committed to implementing measures that ensure the availability of adequate, accurate, and timely information regarding the beneficial ownership and control of legal persons and arrangements. In line with this commitment, SARS has introduced requirements for submitting the Beneficial Interest and Beneficial Ownership registers as part of the Income Tax Return for Companies (ITR14) submission process, effective from the 2022 year of assessment.

Updated guide: How to complete the Income Tax Return ITR14 for Companies

22 April 2025 – The latest edition of the SARS Government Connect Newsletter for April 2025 is now available.  In this newsletter, we provide information on the Employer Annual Declarations commencing on1 April 2025 and updated guides and videos for Tax Exempt Institutions. In addition, we provide details of collaboration agreements that SARS has entered into with other government institutions and updates to the SARS Payments guide.

17 April 2025 – SARS invites you to tender for the goods and/or services as detailed in RFP39/2024. The conditions in the SARS Chain Management Policy and the Regulatory Framework which governs tenders at SARS are applicable to this tender process.

17 April 2025 – In this newsletter, we provide information about how tax practitioners can use the SARS MobiApp to assist their clients; the Employer Annual Reconciliation Declarations that commenced on 1 April 2025; updated guides and videos for Tax Exempt Institutions and the Customs Sufficient Knowledge Competency Assessment for Accredited Economic Operators. In addition, we provide details about collaboration agreements that we have entered into with other government institutions and updates to the SARS Payments guide.

17 April 2025 – Customs and Excise Act, 1964: Publication details for tariffs amendments notice R6129, as published in Government Gazette 52525 of 17 April 2025, are now available.