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South African High Court Issues Order Formally Suspending VAT Increase

29 April 2025

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Approved Changes

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South Africa

On 27 April 2025, the Western Cape High Court issued an order to formally suspend the proposed increase in South Africa's VAT rate. As previously reported, South Africa's National Treasury issued a media statement on 24 April announcing the introduction of legislation that would maintain the standard VAT rate of 15% from 1 May 2025 instead of being increased to 15.5%. This reportedly led to a dispute between the two largest parties in South Africa's government, resulting in the Court order.