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SARS ready to implement VAT rate increase

Mar 28, 2018
SARS ready to implement VAT rate increase

The South African Revenue Service (SARS) says it is ready to implement the increase in Value-Added Tax (VAT) announced by former Minister of Finance, Malusi Gigaba, in February during his 2018 Budget Speech.

"The Minister announced that the VAT rate would increase from 14% to 15% as from 1 April 2018.

"SARS teams have been working on changes to the systems which are used to receive VAT declarations made by vendors and calculate any VAT refunds or VAT due to SARS," said SARS Spokesperson, Sandile Memela. 

"Changes to the VAT201 form have been made to reflect the increase in the VAT rate.

"Vendors who use SARS eFiling to submit their VAT return and have saved returns that span periods before and after 1 April 2018 will notice that those saved returns have been removed as they contain incorrect VAT rates. Vendors must request a new VAT201 on eFiling."

Memela added that SARS would also like to urge vendors to update their systems to align to the new VAT rate in preparation for 1 April 2018.

"This will minimise confusion for the customer and make it easier for vendors to remain tax compliant and make the correct declarations to SARS."

Vendors are encouraged to visit the Value Added Tax page on the SARS website www.sars.gov.za where they will find a Pocket Guide and a set of Frequently Asked Questions to assist them in understanding the implications of the VAT rate increase on various types of transactions.

SARS has also set up a dedicated VAT-rate email address at VATRateEnquiries@sars.gov.za, to which vendors can direct their questions and queries. Vendors may also contact the SARS Contact Centre on 0800 00 7277.