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VAT INCREASE AS FROM 1 APRIL 2018 ON CERTAIN MUNICIPAL SERVICES

VAT INCREASE AS FROM 1 APRIL 2018 ON CERTAIN MUNICIPAL SERVICES 


The Minister of Finance's Budget Speech on 21 February 2018 announced that the standard rate of VAT will change from 14% to 15% on the effective date of 1 April 2018. 

As all municipalities are registered tax vendors, vatable charges on account-holders' accounts will therefore require an increase of 1% VAT on the relevant charges.

Municipal services such as electricity, water and sewerage are billed for the period between the current meter reading and the previous reading. Such consumption may start before 1 April and end after 1 April. In such cases consumption will be apportioned based on daily average consumption and VAT of 14% will be raised on consumption apportioned to the period before 1 April and 15% to the consumption apportioned to the period after 1 April.

Monthly fixed charges will be levied at the applicable rate on date of invoicing, therefore, all fixed charges raised after 1 April will carry VAT at 15%.

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