VAT hike halted – but legal uncertainty keeps SA on fiscal edge
Tax specialist Louis Botha answers pressing questions about the suspended VAT increase and its broader implications for budget-making power and taxpayer rights.
SARS
Budget 3.0 coming after court-backed VAT suspension and new Rates Bill
SARS tells vendors there is now no legal basis for them to charge consumers VAT of 15.5% from 1 May.
Godongwana given 30 days to revise Budget after VAT reversal
The ANC and the DA present South Africans with different versions of what led to the decision to halt the increase.
Under pressure: navigating the financial regulatory heat in 2025
Financial institutions that proactively embed governance, technology, and culture to meet evolving regulatory standards will not only avoid penalties but also strengthen credibility, build resilience, and drive long term value.
Tax Court faults SARS in R158m VAT case over legal insurance fund
SARS’s stance on input VAT was overturned after the court found the fund to be the principal in an insurance agreement – not merely an agent.
Godongwana says VAT court challenge is politics in legal clothing
The finance minister defends the VAT hike as an urgent fiscal necessity, warning that suspending it could blow a R13.5bn hole in the Budget.
How to build a lasting legacy: wealth transfer strategies for families
From trusts to tax-smart retirement planning, here’s how to protect your estate, reduce taxes, and prepare the next generation to manage and grow your wealth.
Groceries, gadgets and gaps: where two-pot savings are really going
Sanlam reports that most withdrawals came from financially strained members in mid-life, with little evidence that funds were used to reduce debt. Instead, spending patterns suggest pressure to cover everyday expenses.
Retirement pot withdrawals could undermine long-term savings
Danie van Zyl of Sanlam Corporate Investments warns that allowing access to retirement components in retrenchment cases might jeopardise long-term savings and place added pressure on trustees.
Experts warn reversing VAT increase may be impractical
Once implemented on 1 May, undoing the VAT hike could prove nearly impossible. Even if Parliament later votes against the Rates and Monetary Amounts Bill, the logistics of refunding the collected VAT present formidable challenges.
South Africans in the UAE: why you may need a separate will for your assets
Many South Africans assume their SA will covers their UAE assets, but without proper cross-border estate planning, legal complications and delays can arise.
SARS’s enhanced compliance efforts add R301.5bn to revenue
The South African Revenue Service outperformed its revised estimates for 2024/25, buoyed by strong personal income tax, VAT, and company income tax collections.
Proposal to tweak ‘bona fide inadvertent error’ in favour of SARS
The move will limit taxpayer defences that rely solely on claiming an unintentional mistake.
Higher VAT will impact business operations and consumer spending
The Minister of Finance cites an average 19% VAT among peers to argue that South Africa’s 15% rate is low, but isolated comparisons miss key factors such as exemptions, corporate rates, and overall business costs.
How SARS arrives at R800bn in uncollected tax
Commissioner Edward Kieswetter explains to Parliament why ‘between R700bn and R800bn is not an unreasonable amount’.
South Africa already has wealth taxes, says Kieswetter
Almost half the revenue from personal taxes is derived from people who earn more than R1 million.
VAT hike scaled back, but social grants take the biggest hit
With the government now R8.6 billion short, planned social grant increases have been slashed – while Home Affairs and border management also see deep budget cuts.
