Need more details about the VAT Increase?

In the recent National Budget speech it was announced that the VAT rate will increase from 14% to 15%.
The following FAQs will provide guidance on what this means for you.

What is the increase in my Subscription related to?

Compliance with legislation, all billable services will be subject to the VAT increase as communicated by the Minister of Finance in the Budget Speech.

I have a 24-month contract at a fixed price. Shouldn’t the VAT increase only apply after this period?

The VAT increase is a government regulated change and all South African companies have to comply with effect from 1 April 2018.

Which of my Vodacom services will be impacted?

All billable services including your contract subscription, bundle services, and out-of-bundle rates for voice, data and SMS services will all be impacted by the VAT increase.

The 1% hike is still a “proposal”, and has not been officially gazetted. Why is Vodacom implementing it?

This has been communicated by the Minister of Finance and as such, Vodacom has to prepare for the planned change. Should there be any changes to the planned legislation, Vodacom will comply accordingly.

What happens if I am changing my tariff this month?

The new pricing will take effect from 01 April 2018 on all chargeable services in order to comply with the vat legislation.

What will I pay in April?

We are working on the implementation of the VAT increase across all our services and the new pricing will be published by 20th March 2018.
Please note: Prices will be effective from 1 April 2018

My subscription is through my employer. Will I as an employee be liable to pay the additional amount due to the VAT increase?

Your company will be liable for the VAT Increase if the account is owned by the company. If you are the account owner, and your company sponsors a portion of your bill, you may be liable for the additional amount due to the VAT increase. Kindly confirm these details with your company account administrator (Sponsored Billing).

Are pre-paid customers impacted by the VAT increase?

All billable services are impacted by the VAT legislation.

What will pre-paid customers pay from 1 April?

We are working on the implementation of the VAT increase across all our services and the new pricing will be published by 20 March 2018.

Will re-charge vouchers be more expensive?

The recharge voucher value will remain the same but the cost of the calls, data and SMS you use are subject to the VAT increase.

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