Major VAT changes outlined
National Treasury has outlined the significant VAT changes contained in the draft Tax Laws Amendment Bill (TLAB) as well as its plans to modernise SA’s VAT regime.
BusinessTech reports that the draft TLAB and Tax Administration Laws Amendment Bill (TALAB) for 2025 were published for public comment on Tuesday and contain the remainder of the tax announcements made in the 2025 Budget Review.
Because of the delayed Budget process this year, the Bills are still going through workshops and engagement processes, but are expected to be tabled by the Minister of Finance during the 2025 MTBPS.
The TLAB in particular contains a host of minor definition changes and amendments that sometimes work out to have significant impacts on the industries affected.
Some key examples include the relatively ‘small’ change to get rid of a R500 and R100 threshold on low-value imports that will reverberate across an entire sector.
BusinessTech notes that other proposed changes are far larger, like making all supplies related to basic educational activities exempt from VAT, which has the consequence of some private schools having to de-register for VAT, impacting their operations.
To mitigate risks in the VAT registration process, SARS may require a site inspection to verify that the enterprise’s business address exists and the premises are suitable for conducting the activities of the enterprise.
In terms of existing law, where a taxpayer conducts business from home, SARS is only entitled to inspect the part of the premises used for trade.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
