Notice: VAT Rate Increase Effective 1 May 2025

Dear Valued Client,

 

As recently announced by National Treasury, the VAT rate in South Africa is scheduled to increase from 15% to 15.5%, effective 1 May 2025.

 

What this means for your orders

 

From 1 May 2025, all invoices issued will reflect the updated VAT rate of 15.5%, in line with SARS regulations. This applies to all orders placed before the effective date where invoicing and payment takes place on or after 1 May.

 

This change will affect all our order and sales channels, including:

  • Purchase Orders
  • System-generated requests
  • E-commerce transactions
  • Retail shop sales

 

Key considerations

 

  • We are aware that many of our clients operate within procurement systems that strictly match invoiced values to PO amounts (e.g. Ariba, Coupa).
  • For orders placed before 1 May that are only fulfilled, invoiced, and paid after that date, the updated VAT rate of 15.5% will apply.
  • Where necessary, we are available to discuss PO adjustments or other solutions to assist with orders impacted by this change.

 

If your system operates on a VAT-inclusive PO basis, where changes in VAT rate will affect PO value matching (resulting in invoice rejections), we kindly ask that you get in touch with us as soon as possible. We’ll work with you to find suitable solutions to accommodate any variances.

 

System Update & Implementation

 

We will be rolling over to the new VAT rate after close of business on 30 April 2025, with updates applied across:

  • All open quotes and jobs in our system
  • E-commerce and POS platforms
  • Internal billing and ERP systems

 

Our team has also been enabled to apply the new VAT rate manually to quotes or proformas where delivery and payment will only occur on or after 1 May, should this be required in advance.

 

If you have any questions, or if you would like assistance with your orders or pricing, please reach out to your account manager. For PO or finance-related queries and workaround requests, please direct your enquiries to andre@bnmsa.co.ca

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Thank you for your continued partnership and support.