CAPE TOWN: South Africa increased its value-added tax rate to 15 percent from 14 percent.
The South Africa Revenue Service earlier released guidance on the impact of the hike, in a “Pocket Guide on the VAT rate increase on 1 April 2018.”
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.
