VAT rate increase guide
On 21 February 2018 it was announced that the value-added tax rate will increase from 14% to 15%. The rate increase is to take effect on 1 April 2018. We have compiled a guide to assist the reader to treat this increase in the VAT rate correctly.
Save for specific provisions that require otherwise, section 7(1)(a), read with section 9(1) of the Value-Added Tax Act No. 89 of 1991, requires a registered VAT vendor to impose VAT on the supply of goods or services in the course or furtherance of such vendor’s enterprise at a rate of 14%, at the earlier of the time when an invoice is issued, or payment is received. This is the general rule. Therefore, unless specifically provided otherwise, the general time of supply rules will continue to apply in determining the correct VAT rate to be imposed on a supply.
We have compiled a guide to assist the reader to treat this increase in the VAT rate correctly.
This guide can be downloaded here.