Sars Instructs Vendors To Continue 15 Vat Charges After Reversal

The South African Revenue Services SARS has urged Value Added Tax VAT vendors, including retailers, to continue charging the 15 VAT rate.

Commissioner Edward Kieswetter says in a statement that SARS recognises the significant impact that the decision to reverse the 0.5 percentage point increase will have on VAT vendors and consumers.

SARS says it acknowledges that vendors and consumers have invested in preparing for an increase in VAT during a period of uncertainty.

It says vendors are expected to continue to charge VAT at the rate of 15 and not 15.5 for the relevant goods and services.

The revenue collection agency has advised vendors to use the limited time available to adjust their systems accordingly. It says VAT vendors who have not implemented the change in rate should stop all development in this regard.