South Africa Tax Agency Posts Guidance, FAQs on VAT Rate Increases in 2025, 2026

The South African Revenue Service March 13 posted online guidance and FAQs on the VAT rate increases announced in the 2025 budget speech. The guidance and FAQs provide that: 1) the standard VAT rate will increase to 15.5 percent from 15 percent from May 1, 2025, and to 16 percent from April 1, 2026; 2) vendors must claim input VAT at the increased rate for supplies after the changes take effect, unless subject to the rate specific rules; 3) the time of supply rules govern which rate to apply for most transactions, but that special time of supply rules apply ...