How to Change your VAT Rate

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VAT Rate Change – Effective 1 May 2025

As of 1 May 2025, the South African VAT rate will increase from 15% to 15.5%. This change applies to all taxable goods and services, and businesses must update their accounting systems to reflect the new rate.

All payPod sales tax (VAT) accounts have already been updated to include the 15.5% rate. Read below for more information.

How to Change your Default VAT rate

  1. Navigate to Company Settings, then scroll down to Accounting Settings.
  2. Click edit next to the VAT or sales tax account. A pop-up will open.
  3. Select the desired VAT rate from the drop-down, or click Add New Tax Rate if you need to add a different rate.
  4. Click Save. The new rate will now be the default when creating invoices and transactions.

How to use a different VAT rate for an invoice or quote, other than the default

  1. Edit your invoice or quote.
  2. Observe the VAT checkbox on each line item. You will see that the % rate is underlined.
  3. Click the underlined rate, and select the desired rate. Repeat for all necessary line items.
  4. Save the invoice/quote.