B2B Central

VAT

10 May 2018

Call for VAT submissions

By Janice Roberts

On 25 April 2018, the Minister of Finance published the Terms of Reference for the Independent Panel of Experts to review the current list of zero-rated items, and consider the most effective way to mitigate the impact of the increase in the VAT rate on poor and low-income households. This is according to a statement...
17 Apr 2018

SMEs - What You Need to Know About the VAT Rate Increase

By Janice Roberts

For the first time in 25 years, South Africans were hit with a value-added tax (VAT) rate increase – from 14% to 15% – further increasing the cost of living for consumers and leaving them with less disposable income to support local small businesses.
30 Mar 2018

Panel to be set up to review list of VAT zero-rated food items

By Janice Roberts

The increase in the Value-Added Tax (VAT) rate from 14 to 15% will take effect on Sunday, 01 April 2018 as announced in the 2018 Budget, and all VAT vendors are therefore expected to charge the higher rate of 15% from this date. The National Treasury says that in order to ensure that VAT is...
29 Mar 2018

Willowton Group to absorb VAT increase

By Staff Writer

Leading southern African fast-moving consumer goods company processor and distributor, Willowton Group announced that they will absorb the one percentage point increase in the value added tax rate for three months (April, May and June 2018) effectively shielding their valued consumers from the VAT increases announced recently in the national budget.
20 Mar 2018

How the VAT increase will affect your next braai

By Janice Roberts

The South African braai – a pastime for all seasons. In our diverse nation, this is truly an activity all can relate to. As we edge closer to 1 April 2018 it seems that this delightful pastime will come at an increased cost. 
17 Mar 2018

VAT rate increase and the impact on the short-term insurance industry

By Janice Roberts

By Yusuf Bodiat, Lion of Africa Insurance. Value-added tax (VAT) was introduced in South Africa in September 1991 to replace General Sales Tax (GST) as an indirect tax. VAT was imposed at a statutory rate of 10%, and then increased to 14% in 1993. Since then, the rate of the tax charge has not changed, until...
07 Mar 2018

Finance committees still undecided on VAT increase

By Janice Roberts

Des Kruger, Consultant at Webber Wentzel and member of the Ad-hoc VAT Committee, comments that finance committees are still undecided on the VAT increase.
22 Feb 2018

Is Budget 2018 enough to please Moody’s?

By Janice Roberts

  By raising South Africa’s VAT rate from 14% to 15%, the South African government indicated a willingness to take difficult (and unpopular) decisions in order to stabilise the fiscus. Coupled with the recent change in the President, this Budget should be enough to keep Moody’s on hold when they release their South Africa sovereign...
22 Feb 2018

Personal income tax buoyancy has run its course

By Janice Roberts

South Africa’s tax measures have traditionally focused on personal income tax as an important source of revenue as this had always proven to be a particularly buoyant source of revenue.  However, over the last years South Africa’s personal income tax collections have continued to underperform.
22 Feb 2018

BUDGET 2018 COMMENT: No wealth tax but taxing the wealthy

By Janice Roberts

In his 2018 Budget Speech, Finance Minister Malusi Gigaba has found a balance between raising taxes on the wealthy, broadening the tax base and providing a safety net for the poor. The rand appreciated somewhat and bond yields traded lower soon after the Minister started to speak, signalling firm approval from the markets.
21 Feb 2018

BUDGET 2018: COMMENT - National Budget geared to instill confidence

By Janice Roberts

Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
21 Feb 2018

BUDGET 2018: COMMENT - Decision to raise VAT 'inevitable'

By Janice Roberts

The decision to raise VAT in Budget 2018 was ‘inevitable’, but risks of continuing to raise various taxes in the face of weak growth is why SA needs much higher economic growth rates. This is according to Professor Raymond Parsons, economist at the NWU School of Business and Governance “Despite its laudable goals and commitment...