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Overall, the South African tax system is viewed as being progressive in nature, as the rich pay tax at a higher rate than the poor . Which is why VAT shouldn’t beafter it had remained unchanged for 15 years .of 4.2% in 2018/19 and 5.8% in 2019/2020. The entities can also claim input tax on all purchases made on which VAT was levied, if it is used for business purposes. The net amount remaining after subtracting the input tax from the output tax must be paid to the South African Revenue Service.
– the effect of changes in the VAT rate on tax compliance behaviour by small businesses in South Africa.as tax registration is particularly low in this sector. They have also indicated that an increased audit focus will be placed on small, medium and micro enterprises.
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