'Check your receipts': SARS urges South Africans to verify correct VAT rate following Treasury's U-turn

The South African Revenue Service (SARS) is urging South Africans to ensure that they are being charged the correct Value Added Tax (VAT) rate of 15%.

This follows Treasury's U-turn on a 0.5 percentage point hike that would have taken effect on May 1. 

"All consumers are urged to ensure they are charged the correct VAT rate of 15%. In the unlikely event they are charged 15.5%, consumers should bring this to the attention of the vendor and ensure that this is resolved at the point of sale or otherwise by mutual agreement," said SARS Commissioner, Edward Kieswetter.

He added that due to the court's order to suspend the increase, there is no reason for VAT vendors to implement an increase.

"All vendors are urged to readjust their systems back to 15%," Kieswetter said.

Kieswetter said vendors who haven’t switched back to the 15% rate due to complex system changes must continue reporting and accounting at the 15.5% rate until they adjust their systems, which must be done by May 15, 2025.

"Vendors who have already implemented both the rate changes and the Zero-Rating are encouraged to reverse those changes before May 1," the Commissioner said.

seanne.rall@iol.co.za

IOL