Sars Welcomes Court Ruling Suspending May 1 Vat Increase

The South African Revenue Service SARS has welcomed a court order suspending the planned 0.5 Value Added Tax VAT increase that was set to take effect on 1 May 2025.

The suspension comes after the Western Cape High Court set aside Parliament's approval of the fiscal framework enabling the hike.

SARS Commissioner Edward Kieswetter says the ruling provides critical clarity for the administration of the VAT Act and avoids disruption for businesses and consumers.

The order allows SARS to administer VAT efficiently while protecting taxpayers, Kieswetter states, emphasising that vendors have no legal basis to implement the higher rate.

SARS will monitor compliance, though Kieswetter expressed confidence in vendors' ability to adjust swiftly.