The South African Revenue Service (SARS) has confirmed that it will implement Finance Minister Enoch Godongwana’s decision to reverse the planned 0.5% increase in Value-Added Tax (VAT), which was initially set to come into effect on 1 May 2025.
SARS Commissioner Edward Kieswetter acknowledged the Finance Minister’s announcement, noting the “significant practical implications” for both VAT vendors and consumers.
In a statement, Kieswetter stressed that SARS, as the administrator of national tax measures, would ensure the necessary adjustments are made promptly.
The reversal follows the Minister’s media statement and the publishing of Government Notice No. 6157 of 24 April 2025, alongside the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill, which Parliament is expected to pass shortly.
Key measures for VAT vendors:
Kieswetter acknowledged the confusion the reversal has caused, stating: “We understand the complexity and confusion that has resulted from this process. SARS will do its best to provide further clarity to create certainty of obligation for all vendors.”
The VAT rate adjustment process comes after a period of public uncertainty and Parliamentary debate. SARS has promised to support vendors through the transition with further guidance as necessary.
Vendors and taxpayers are urged to stay updated via official SARS communications as the May 1 deadline approaches.
Do you anticipate much confusion when the VAT hike DOESN’T take place on 1 May?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
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