| Update: | Compliance Alert - SARS increases the VAT rate from May 1, 2025 |
| Date: | 2025-04-10 |
The South African Revenue Service (SARS) will increase the VAT rate as follows:
- The standard rate of VAT will change from 15% to 15.5% on May 1, 2025, and will apply until the effective date of the second increase;
- The second rate increase of 0.5% will make the VAT rate 16% and will be applicable from April 1, 2026.
More information on the impact of the first rate increase is available here.