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Practical considerations of the VAT rate increase as of 1 April 2018

28 February 2018 | Tax

On 21 February 2018, the Minister of Finance announced in his Budget Speech that the standard rate of VAT of 14% would be revised upwards to 15%, as of 1 April 2018, in line with Government's drive to raise additional revenue. The ramifications of the VAT rate increase need to be considered by suppliers as it will impact on the correct amount of output VAT declared to SARS (taking into consideration that there may be supplies made before/on/after 1 April 2018). The issue of long-term contracts must also be considered. Applying the correct VAT rate is important as the output VAT liability to SARS is ultimately that of the supplier of the goods or services. If the correct rate is not applied, this would result in a commercial loss for the supplier and penalties and interest being imposed by SARS.

Take note, SARS can take money from your account

26 February 2018 | Tax

Taxpayers should be aware that if you have outstanding tax debt, SARS has the power to reach into your bank account and take the outstanding funds by instructing your bank, as its agent, sometimes even without notifying you.

Tax-free saving: everything you need to know

21 February 2018 | Tax

With the end of the tax year fast approaching, you have only until 28 February to top up all the investments that give you that much needed tax break and make use of this year’s allowances. The first type of investment, the retirement annuity (RA), has been around for many years and most investors are familiar with this product. The second type of product, the tax-free savings account (TFSA), was only introduced in 2015, but is fast gaining popularity among retail investors – for obvious reasons.

The R50 Billion rand question – will the Finance Minister increase the VAT rate?

07 February 2018 | Tax

The question on everyone’s lips ahead of the Budget Review is whether the Minister of Finance will announce an increase in the VAT rate, and if so, what that increase will be?

quick poll

Question

If you had to choose one approach to protect your hard-earned investment cash from today’s market madness, which would it be?

Answer