0.5% VAT Increase Set to Take effect 1 May 2025
Gerrit Weideman • April 15, 2025
The proposed VAT rate increase is scheduled to come into effect on 1 May 2025.
While there is a pending High Court application to stop the VAT hike, as at the time of writing the implementation date remains in place. Unless and until the increase is interdicted by the High Court, or a political decision is made to reverse or suspend it, businesses must comply with the new rate from 1 May.
We encourage all businesses to ensure their systems are updated accordingly. This includes:
Updating your invoicing and accounting software to apply the correct VAT rate from the effective date
Reviewing any contracts or quotes that extend beyond 1 May
Considering necessary adjustments to your pricing structures
Communicating changes clearly to clients and suppliers
If you are unsure of what needs to be done or how best to implement the changes, we are available to assist.
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