South Africa Guides On Impact Of April VAT Hike

by Lorys Charalambous, Tax-News.com, Cyprus

28 February 2018

South Africa has issued a guide on the value-added tax rate increase to 15 percent from 14 percent due to take effect from April 1, 2018.

From April 1, 2018, all taxable goods or services supplied by vendors, goods imported, as well as certain services supplied by non-residents to residents for non-taxable or private use (imported services) will be subject to the VAT rate of 15 percent.

The guide sets out how to determine the taxable event for transactions. Generally, most transactions occurring on or after April 1, 2018, will be subject to VAT at the new rate unless a special time of supply rule or a rate specific rule applies.

The guide also sets out rules concerning pricing, contractual agreements including the 14 percent rate, changes required of businesses with regards their billing and accounting systems, the obligation on taxable persons to ensure that the correct rate of VAT is levied, including with regards inputs, the specific rules for imported goods, changes to VAT forms, and input tax credit rules for supplies subject to the 14 percent rate.

TAGS: South Africa | compliance | VAT rates | VAT tax authority guidance | tax | business | value added tax (VAT) | VAT legislation | accounting | tax authority | agreements | legislation | services | VAT compliance matters | Africa

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