South Africa VAT Timeline [From GST to 15% VAT Rate Evolution]

Discover the evolution of South Africa’s Value-Added Tax (VAT) system, a journey that transformed the country’s tax landscape from the old General Sales Tax to the modern VAT, shaping its economy over decades.

Here is a timeline of the VAT history in South Africa by years:

• 3 July 1978: South Africa introduced General Sales Tax (GST) as the main indirect tax, starting at a rate of 4%.
• 1 March 1982: GST rate increased to 5%.
• 1 September 1982: GST rate increased to 6%.
• 1 February 1984: GST rate increased to 7%.
• 1 July 1984: GST rate increased to 10%.
• 25 March 1985: GST rate increased to 12%.
• 30 September 1991: VAT was introduced at a rate of 10%, replacing GST.
• 7 April 1993: VAT rate increased to 14%.
• 1 April 2018: VAT rate increased from 14% to 15%, the first increase in 25 years.
• April 2025 (planned but reversed): There was a proposal to increase VAT to 15.5% from 1 May 2025 and to 16% from 1 April 2026, but this was reversed, keeping VAT at 15%.

VAT replaced GST in 1991 and has seen only two rate increases since then (1993 and 2018), remaining a key source of government revenue.

Key Milestones in South Africa’s GST & VAT History

Quickly scan essential tax rate changes and important dates in South Africa’s sales tax evolution at a glance!

Date	Event	Tax Type	VAT was introduced, replacing GST
3 July 1978	Introduction of General Sales Tax (GST)	GST	4%
1 March 1982	GST rate increase	GST	5%
1 September 1982	GST rate increase	GST	6%
1 February 1984	GST rate increase	GST	7%
1 July 1984	GST rate increase	GST	10%
25 March 1985	GST rate increase	GST	12%
8 May 1989	GST rate increase	GST	13%
30 September 1991	VAT introduced, replacing GST	VAT	10%
7 April 1993	VAT rate increase	VAT	14%
1 April 2018	VAT rate increase	VAT	15%

This timeline shows the transition from GST to VAT and the key rate adjustments over the years in South Africa’s tax system.