What Happened?

Initially, the government proposed raising VAT from 15% to 15.5% starting 1 May 2025, aiming to address a R75 billion revenue shortfall. However, after significant political
opposition and public concern over the potential impact on low-income households, the decision was reversed.

What This Means for You:

VAT remains at 15%: No changes are required to your pricing, invoicing, or accounting systems.

Stay Informed: While this reversal brings relief, it’s crucial to stay updated on any future fiscal policy changes that may affect your business.

Need assistance navigating these changes? We’re here to help.

May 5, 2025 By Mags Spack

About Mags Spack

As a multi-award-winning businesswoman, accountant, and a registered tax practitioner with SAIT, I am passionate about helping entrepreneurs thrive. On TBBK & P's blog, I share expert tax and accounting advice tailored for small business owners. As a certified Law of Attraction and Allowing Your Success coach, I guide entrepreneurs in aligning their business goals with their dreams. Follow me on social media for daily Law of Attraction tips, affirmations, and the health strategies I use to stay energized and focused on success.