The increase in the VAT rate from 14% to 15% was arguably the biggest announcement in the 2018 Budget Review from a tax perspective. This change in VAT rate will impact consumers directly as the cost of goods or services increase from 1 April 2018. However, VAT vendors may also face some transitional challenges as a result of the change in the rate. These include determining the appropriate rate of tax on supplies made around 1 April 2018 and claiming input tax at the correct rate.
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