In a second attempt to get the country’s 2025-2026 budget approved, South Africa’s National Treasury proposed a VAT rise that would be split into two phases: a rise from 15% to 15.5% starting May 2025 and then a rise from 15.5% to 16% starting in April 2026.

The bottom line: The VAT rate in South Africa could increase to 16% by 2026 or 2027, with the potential earliest rise of 0.5% happening in May 2025. However, this hike is currently being contested and won’t move forward without approval from the South African Parliament.