VALUE ADDED TAX

The Minister of Finance announced the value-added tax (VAT) rate increase in his budget speech on 21 February 2018. The standard rate of VAT will change from 14% to 15% with effect from 1 April 2018. This means that from 1 April 2018, all taxable goods or services supplied by vendors, goods imported, as well as certain services supplied by non-residents to residents for non-taxable or private use (imported services), are subject to the VAT rate of 15%.

It is compulsory for a company/practice with taxable supplies of R 1 million or more for a twelve months period, or when an company/practice determines that it is likely to exceed the R 1 million for a twelve month period, to register for VAT