| Update: | Compliance Alert – Government approves 2025/26 National Budget |
| Date: | 2025-04-24 |
On March 12, 2025, during the National Budget Speech, the Minister of Finance announced the upcoming value-added tax (VAT) rate increase.
Currently, the standard VAT rate stands at 15%, but once the reform is fully implemented, the standard VAT rate will be 16%.
This VAT increase will be implemented in two phases:
- May 1, 2025: 0.5% increase to 15.5%;
- April 1, 2026: 0.5% increase to 16 %.
The South African Revenue Service (SARS) has released an FAQ about the increase in the VAT rate from May 1, 2025, that can be accessed here.