VAT audits expand as SARA targets compliance gaps amid fiscal pressure Following a political backlash that threatened the cohesion of South Africa’s ruling coalition, the government has formally abandoned its proposed 1% VAT rate increase. Instead, the South African Revenue Service (SARS) is shifting its
VAT remains at 15%; coalition withdraws two, 0.5% increases – May 2025 & April 2026 – to 16% The South African government on 24 April withdrew the proposed 0.5% VAT rise to 15.5% due to go ahead on 1 May 2025. The rise was contained
South African Revenue Service issues guidance on implementing 0.5% VAT rise 1 May 2025 As part of the 2025 National Budget, the South African government announced an increase in the VAT rate from 15.0% to 15.5%, effective 1 May 2025. A further increase to 16.0%
1 April 2025, VAT on non-resident digital services reforms South Africa is to reform its non-resident digital services VAT regime from 1 April 2025. There are three main changes: Withdrawing the obligation for foreign providers of digital services to VAT register in South Africa if
Potential SARS 5-corner Peppol e-invoicing & e-reporting The South African Revenue Service (SARS) may move for a further debate on VAT modernisation, including B2B e-invoicing between businesses and e-reporting to the tax authorities. This follows a 2023 consultation where SARS consulted on offering pre-filled VAT
SARS scraps 15% import VAT exemption on consignments below 500 rand from 1 September 2024 The South African Revenue Service (SARS) has imposed on all imported consignments for B2C sales 15% VAT. This came into effect from 1 September 2024. Previously, parcels below 500 rand
