2025 - VAT changes in RSA (15% -> 15.5%)
Last updated
Last updated
As of 1 May 2025, according to the latest guidance from SARS, the VAT rate in South Africa is set to increase from 15% to 15.5%.
We know there’s still a bit of uncertainty around the change, but don’t worry—OrderEazi will be ready to support you either way.
What does this mean for your business? If you charge VAT on sales or pay VAT on purchases in South Africa, this update will apply to you. From 1 May, you will need to start using the new 15.5% rate for relevant transactions in OrderEazi.
To help you stay on top of things, check out the and —they cover the transitional rules and how they might affect how you record transactions.
Due to the recently passed 2025 budget, the VAT rate will change from 15% to 15.5%.
In preparation for this change, we have implemented the ability to control VAT rates at the project level.
This will enable customers to modify their Tax Rates on a per-project level, allowing them to transfer already created orders from the old VAT rate to the new one.
This feature is available to change as long as a Sales Order has not already been generated on the project. If a project has already been invoiced, it will not need to be updated. Any projects that are pre-invoice need to be updated by the users to the new rate if they are only going to be invoiced post 1 May 2025.
**You will need to discuss with your large corporate customers, particularly when a purchase order is involved, to ensure they match the orders on total, excluding or including VAT. If they work off the latter, they may need to reissue a new purchase order to match the new total after the VAT change. **
We have added a new VAT rate selector to the Purchase Order creation screen, allowing you to set the VAT rate for a Purchase Order when generating the document.
If you have already created a Purchase Order but have not yet received an invoice from your supplier, please get in touch with them to determine if they will be invoicing you at 15% or 15.5%. If they are invoicing you at the new rate, you will need to void and recreate the document; if they are invoicing at the old rate, you can leave the created document as is.
Any purchase orders created after this will use the supplier defaults, which have been updated to reflect the new rate.
In preparation for the upcoming VAT changes, all clients are instructed to set up new VAT rates in their ERP/Accounting systems. These rates must be set up beforehand, as OrderEazi will need to synchronise these for you to use them on your projects.
** You can pre-emptively create the Tax Types, don't update any of your clients or suppliers to the new rate until 1 May 2025.
** DO NOT edit the existing standard rate (15%) Tax Type in your ERP, you must create a new Tax Type for the 15.5%.
You must also ensure that you update the default rates in the Organization > Accounting System area to match the newly created rates.
