0.5% VAT Increase Set to Take effect 1 May 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