“Check Your Receipts”: SARS Warns Shoppers After VAT Rate Reversal

The South African Revenue Service (SARS) is calling on all South Africans to double-check their shopping receipts to ensure they are being charged the correct 15% VAT rate, following a surprise U-turn by the National Treasury.

Initially, a 0.5 percentage point VAT hike—raising the rate to 15.5%—was scheduled to take effect on May 1, 2025. However, the decision was reversed after a court ruling, effectively halting the increase before implementation.

SARS Commissioner Edward Kieswetter confirmed the rollback and stressed that there is now no reason for vendors to charge anything above 15%.

“All consumers are urged to ensure they are charged the correct VAT rate of 15%. In the unlikely event they are charged 15.5%, consumers should bring this to the attention of the vendor and ensure that this is resolved at the point of sale or otherwise by mutual agreement,” Kieswetter stated.

Vendors Must Act Fast

According to SARS, all VAT vendors must readjust their systems back to 15%. Those who have already implemented the 15.5% rate—and possibly even applied zero-rating exemptions tied to the new system—must reverse these changes before May 1.

For vendors who are technically unable to switch back immediately due to complex systems, Kieswetter said they must continue reporting at the 15.5% rate until changes are complete. A firm deadline of May 15, 2025 has been set for compliance.

“Vendors who have already implemented both the rate changes and the Zero-Rating are encouraged to reverse those changes before May 1,” Kieswetter added.

Why This Matters to Consumers

With the cost of living already high, a VAT overcharge—even by half a percentage point—could hit South Africans hard. SARS is urging consumers to pay attention at tills, particularly in large retail outlets, where systems may take longer to recalibrate.

While SARS says overcharging is “unlikely,” it is still possible that some stores may mistakenly continue using the incorrect rate in the coming days.

{Source: IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com