South Africa has an efficient VAT system that compares well with international benchmarks, according to a Davis Tax Commission report.
Other highlights of the report include:
The importance of Sars’ modernisation efforts to become a world-class tax administrator and collections agency.
The significant role that the financial services industry plays in the South African economy.
Further work that needs to be done by Sars and Treasury to consider measures adopted in other jurisdictions to prevent increased costs.
- More work that needs to be done regarding electronic commerce.
We interviewed Charles de Wet, Tax Partner at PwC, who welcomes the Davis Tax Commission’s report.
Scroll down to listen to the audio.
We’ve been saying for years that government should raise VAT. It’s almost certain we’ll see this in the Budget next year. Our VAT rate of 14% is quite low by international standards.— Charles de Wet, Tax Partner at PwC
There’s a push around the world towards more VAT. It’s easier to audit and monitor.— Charles de Wet, Tax Partner at PwC