- VAT rate increases from 15 percent to 15.5 percent effective May 1, 2025
- Rate determined by time of supply, which is the earlier of invoice issuance or payment receipt
- Property sales VAT rate depends on registration or payment date
- Ongoing contracts apply new rate to payments due or received on or after May 1, 2025
- Goods or services fully supplied before May 1, 2025, retain 15 percent rate
- Transactions spanning the change require fair apportionment between old and new rates
- Special cases like estate agent commissions or instalment sales follow specific rules
- Businesses must navigate transitional rules and anti-avoidance measures
- Ensure accurate VAT application for imports, deposits, or pre-printed price lists
- Adjust practices by August 31, 2025, where applicable
Source: galbraithrushby.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
