What does a reversed VAT hike mean for consumers?
AJM Tax director Leonard Willemse said consumers who had been charged 15.5% since the announcement of the VAT hike will be reimbursed for their money.
The South African Revenue Service (SARS) said all vendors or businesses that cannot change the Value Added Tax (VAT) back to 15% can charge 15.5% but will have until May 15th to change back to 15%.
This comes after Finance Minister Enoch Godongwana reversed the decision to hike the VAT by 0.5%.
Willemse advised consumers and vendors to reach out to reputable tax practitioners if they are not sure about the process.
"What would happen is if you were charged 15.5%, you are then entitled to ask the supplier to issue a credit note and refund you the amount of the VAT that was overcharged,” said Willemse.
"So anybody that has already made payments based on a 15.5% VAT rate has got recourse in the form of a request for a credit note.“
“They can contact the supplier and basically ask for a refund of the VAT that's been overcharged."
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