3596444 - VAT Rate Changes For South Africa Scheduled for 2025 and 2026

On March 12, 2025, South Africa's Finance Ministry announced that the country's value-added tax (VAT) rate will increase. 

Starting from May 1st, 2025, the VAT rate will go up by 0.5% to 15.5%. Another 0.5% increase will follow on April 1st, 2026, bringing the rate to 16%. These changes will impact businesses and consumers.

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SAP Business ByDesign

Resolution-
To ensure compliance with the new VAT rates, users of SAP Business ByDesign need to implement the following settings:

1. Go to Business Configuration work center.
2. Open Overview view.
3. Search and open Activity: Tax on Goods and Services.
4. Click on Tax Rate Schedules.
5. In Column Country/Region, check current rates maintained by searching for ZA - South Africa.
6. Add a new row with Valid From Date 01.05.2025, Rate 15.5% and another row with Valid From Date 01.04.2026, Rate 16%, as of below:

By following these steps, SAP Business ByDesign users of South Africa can smoothly transition to the new VAT rates and ensure compliance with South Africa's updated tax regulations.

Blog post: South Africa VAT Rate Change

South Africa, VAT, change, rate , KBA , SRD-FIN-GLO-TAX , GLO - Tax Declaration , How To