VAT rate changes
What’s Changing?
In the 2025 Budget Speech delivered on 12 March 2025, South Africa’s Minister of Finance announced a two-step increase in the standard VAT rate:
- The current rate of 15% will rise to 15.5%, effective 1 May 2025.
- A second increase—bringing the VAT rate to 16%—is expected from 1 April 2026, subject to the passing of enabling legislation by Parliament within 12 months.
How to prepare for this change?
Sage X3 provides its clients with a set of tools to configure the rules for determining, calculating, and declaring VAT. This flexibility allows our clients to adapt a standard configuration to their needs but makes it irrelevant for Sage to apply configuration changes.
This is why clients must adjust the VAT configuration to their context. To help them, Sage has published numerous How-to guides in the online help. Here are some links:
This link uses an example of a VAT rate change in France but provides good guidance for adjusting the declaration process.