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VAT Increase cancelled!
- 24 April 2025
- SARS Issues
- South African Accounting Academy
Summary:
In a media statement issued on its website in the early hours of 24 April 2025, the National Treasury announced the reversal of the controversial VAT increase, which was meant to take effect on 1 May 2025.
Article:
The Minister of Finance will shortly introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill (Rates Bill), which proposes to maintain the Value-Added Tax (VAT) rate at 15 per cent from 1 May 2025, instead of the proposed increase to VAT announced in the Budget in March.
The decision to forgo the increase follows extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees.
The Minister of Finance expects to introduce a revised version of the Appropriation Bill and Division of Revenue Bill within the next few weeks.
Click here to download the media statement:
Relevance to Auditors, Independent Reviewers & Accountants:
- The VAT Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- All auditors, accountants, independent reviewers and tax practitioners should be aware of the latest publications issued by National Treasury, SARS, etc. to remain up-to-date with the guidance provided therein.
- This document provides confirmation that the proposed increase in the VAT rate on 1 May 2025 has been cancelled.
Relevance to Your Clients:
- All taxpayers have a duty to comply with the VAT Act, otherwise they could be held liable.
- This document provides confirmation that the proposed increase in the VAT rate on 1 May 2025 has been cancelled.