Budget tips to survive the vat hike

Finance Minister Melusi Gigaba announced in his budget speech on 21 February 2018 that for the first time in 25 years, VAT will increase by one percentage point to fifteen percent as of 1 April 2018. A one percentage point increase in VAT implies that 7.1 percent more tax will be collected. For Senwes clients registered for VAT for farming purposes, this increase will have a minor effect as VAT on all major input costs can be claimed back from South African Revenue Services (SARS).

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