What you should know about SARS’ VAT rate reversal

THE SA Revenue Service (SARS) has issued a warning to vendors and consumers about the implications of the reversal of the scrapped 0.5% VAT rate increase.

- MASHUDU SADIKE

SARS Commissioner, Edward Kieswetter, noted that the decision by Finance Minister Enoch Godongwana to reverse the VAT increase, initially set to take effect on May 1, has significant practical implications for VAT vendors and consumers.

The warning comes after the Western Cape High Court's full bench set aside the adopted 2025 Fiscal Framework and Revenue Proposals and suspended the implementation of the VAT increase from 15% to 15.5%.

The EFF and the DA had approached the court to have the VAT increase announcement by Godongwana as well as the adoption of the finance committees’ report by both Houses set aside.

Kieswetter said SARS will ensure the necessary adjustments are made to accommodate the change.

“As the administrator of all national government tax measures, SARS will ensure that the necessary adjustments are made to accommodate this change,” Kieswetter said.