Archive for month March, 2018

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Dear VAT Vendor

The Minister of Finance announced a VAT rate increase from 14% to 15% effective 1 April 2018 in the 2018 Budget Speech.

To assist you in preparing your VAT return (VAT201) submission, the South African Revenue Service (SARS) would like to bring the following to your attention:

The new tax fraction applicable from 1 April 2018

The new tax fraction to calculate the amount of VAT is as follows:

Rate of tax 15
________________________________________ =
100 + rate of tax 115

For example, if the VAT-inclusive price (final consideration) is R1 150, the VAT amount is calculated as follows:

R1 150 × 15/115 = R150 VAT

Effect on VAT Vendors:

Vendors should determine when supplies of goods and services are deemed to have taken place and also consider the special rules that apply when there is a change in the VAT rate to ensure that the correct rate of VAT is applied in respect of the supply, the acquisition and importation of goods and services. A comprehensive set of Frequently Asked Questions (FAQs) is available on the SARS website or you can click here to open the document.
How to prepare and submit your VAT201

Vendors whose tax periods span the old VAT rate of 14% and the new VAT rate of 15% (effective from 1 April 2018) will be required to declare these transactions on a single VAT201 return. The most impacted would be the Category B vendors whose tax periods are periods of two months ending on the last day of April 2018. Also impacted are the Category D vendors whose tax periods are periods of six months ending on the last day of August 2018. Category E vendors whose tax periods are periods of twelve months ending on the last day of the year of assessment will also be impacted.

Vendors who have tax periods that span the 14% and 15% VAT rate (Category B, D and E vendors) as well as future tax periods where the rate of 14% is applicable to certain supplies will be required to disclose their transactions as follows:

Output Tax

• for all standard rated supplies where VAT at 15% has been levied, please use the standard rated fields on the VAT201 that you would normally use to declare the output tax.
• for all standard rated supplies where VAT at 14% has been levied, please use Field 12 – “Other and Imported Services” on the VAT201, to declare the output tax.
Input tax

• for all capital and other goods and/or services supplied to you and charged with VAT at a rate of 15%, please use fields 14 and 15 on the VAT201;
• for all capital and other goods and/or services supplied to you and charged with VAT at a rate of 14%, please use Field 18 – “Other” on the VAT201, to deduct the VAT; and
• for all imports, irrespective of whether the VAT was charged at 14% or 15%, please use Field 14A and 15A on the VAT201 to deduct the VAT.
Please note:
• If you are using eFiling for the submission of your VAT201 and have saved a VAT201 for tax periods commencing on or after March 2018, the saved VAT201 will be removed so that the updated VAT201 with the correct rate of tax can be requested.
• The updated VAT201 will be made available soon. Please monitor the website for updates regarding the VAT201.

For more information please visit the Value Added Tax page on the SARS website where you will find guides to help you complete and submit your VAT return, or contact the SARS Contact Centre on 0800 00 7277. You can also send an email to with your enquiries.

March 2018

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Dear Customer,

The Minister of Finance announced an increase in Value Added Tax (VAT) from 14% to 15%, effective 01 April 2018. Our products and services are subject to VAT and therefore the increase in VAT will result in price adjustments.

The updated invoice amounts will be reflected on ALL of our invoices and quotations from 01 April 2018.

We value your continued support.

Should you have any further queries or require further information or clarification, please do not hesitate to contact me directly on email: or you can call us on: 011 312 9250 (Switchboard).


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A worthwhile read:


Tax SAIBA Accounting Weekly

Never before have the fundamental assumptions about the US job market looked so precarious. Automation, artificial intelligence, and robotics, among other technologies, are changing the skills and the skill level required of employees in many industries, including retail, transportation, and manufacturing.

This is according to an article in AccountingToday 

Amy Pitter writes that the accounting profession is experiencing similar changes, and the pace and pressure of that change is exploding into a major disruption. She says robotics is expected to eliminate 40 percent of basic accounting work by 2020. We’re in the early stages of the big data and artificial intelligence revolution in accounting, which already is being wholeheartedly embraced at the larger firms. “Blockchain, which may develop as the most significant disruptor of all, is only in its infancy. As blockchain gains traction, it promises to provide a viable replacement for the traditional third-party verifier of transactions, radically altering both the concept of audit and the role of auditors in ways that are only beginning to emerge”.

Pitter further writes:

These new technologies create a labour conundrum for the accounting industry. As routine work becomes commoditised, the traditional entry-level jobs are being eliminated. At the same time, there is an intense demand for accountants with more specialized and higher-level skills. But where are these accountants with knowledge of data analytics, cybertechnologies, critical thinking and great client skills going to come from? It’s hard to grow them organically with fewer entry-level jobs, and these higher-level skills are not necessarily being taught in college accounting programs.

The demand for data analysts and experts in the space where technology meets accounting is through the roof. Also, what we used to call “soft skills” are now being taken very seriously. Critical thinking, creativity, communications skills and the ability to be part of a team are skills that have become as integral to the job as debits and credits. One clear challenge for the academic community is to provide curricula that better mirror the reality in the industry – for new hires must embrace the evolving technology and also quickly become fluent in the new level of consultative services the technology will yield.

One thing that hasn’t changed is the human capital crunch in accounting, which has brought a profound culture shift in the profession. There was a time when staff at all levels were expected to be physically in the office nights and weekends during the “busy season.” Increasingly, a combination of enabling technology and employee expectations has turned those old ways on their ear, giving way to greater flexibility for employees – so long as they produce. Firms also are learning that Millennials are not a generation that wants to be seen and not heard. Indeed, they want to be consulted and see their ideas put into place.

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This is just a high level summary, should you need detailed information kindly email our secretarial team on:

2018/2019 Tax Table

Rates of tax for individuals

Following the changes announced in the Budget Speech on 21 February 2018, the rates of tax outlined below will be effective 1 March 2018.


Taxable Income (R) Rates of tax (R)
​0 – 195 850 18% of taxable income
​195 851 – 305 850 35 253 + 26% of taxable income above
195 850
​305 851 – 423 300 63 853 + 31% of taxable income above
305 850
​423 301 – 555 600 100 263 + 36% of taxable income above
423 300
​555 601 – 708 310 147 891 + 39% of taxable income above
555 600
​708 311 – 1 500 000 207 448 + 41% of taxable income above
708 310
​1 500 001 and above 532 041 + 45% of taxable income above
1 500 000

Tax Rebates:

Primary R14 067
Secondary (Persons 65 and older) R7 713
Tertiary (Persons 75 and older) R2 574

Age Thresholds:

Age Tax Threshold
Below age 65 R78 150
Age 65 to below 75 R121 000
Age 75 and over R135 300

Medical Aid Tax Credits:

Medical Aid Tax Credits
Main Member R310
First Dependent R310
Additional Dependents R209

Subsistence Allowance:

Subsistence Allowance (RSA)
Meals and Incidentals R416
Incidentals Only R128

Prescribed Rate Per Kilometre:

Prescribed Rate Per Kilometre
Prescribed Rate Per Kilometre is R3.61 (2017/18: 3.55)


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We are pleased to announce that Sage South Africa accredited IABC several years ago  as an Approved Business Partner FOR product sales, implementation, support and training. IABC supports a wide range of Sage products including; Sage Evolution, Sage Partner & Xpress, Sage One Accounting & Payroll and Sage Partner Payroll & HR. IABC has since achieved Gold Re-seller status.

Feel free to contact us on E: T: 011 312 9250; web:


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Are your declarations and refunds in line with the Vat Act and Tax Administration Act? Its all nice when we get the refunds but there could be comebacks.

“South African Revenue Service (Sars) commissioner Tom Moyane has been accused of illegally authorising the payment of a R70 million VAT refund to a Gupta-linked company, Daily Maverick’s investigative unit Scorpio reports.

According to the report, Oakbay Investments director Ronica Ragavan emailed Moyane on May 22 last year requesting him to pay the first of three VAT payments amounting to R70 million into Terbium Financial Services’ account for the benefit of Oakbay.

The Guptas appointed Terbium as a payment agent to manage the payment of staff salaries after the country’s four major banks in 2016 severed ties with the controversial family accused of state capture and corruption.

The payment of the VAT refunds was reportedly despite objection from several Sars officials who warned Moyane and its chief officer of legal counsel Refiloe Mokoena that the law doesn’t permit the payment of VAT refunds into third party accounts to prevent fraud and money laundering.” – News24

M Kalaluka

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