After considerable opposition from the Democratic Alliance and several smaller political parties the South African Government has announced that it is cancelling its planned VAT increase. The government originally announced a plan to increase its VAT rate to 15.5% on May 1st and to 16% in 2026. On April 24th the Finance Ministry issued a media statement announcing its intent to cancel the VAT rate. The National Treasury has also released Government Notice No. 6157 confirming the reversal of the VAT rate increase. As a result of this cancellation the VAT rate in South Africa will remain 15%.
South Africa Cancels VAT Increase
Andrew Decker
April 29, 2025
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Author
Andrew Decker
Andrew Decker is a Regulatory General Counsel at Sovos within the Regulatory Analysis & Design Department. Andrew focuses on international VAT and GST issues and domestic sales tax issues. Andrew received a B.A. in Economics from Bates College and J.D. at Northeastern University School of Law. Andrew is a member of the Massachusetts Bar.
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