Value-Added Tax (VAT) was introduced in South Africa to replace General Sales Tax (GST).

1978: Introduction of General Sales Tax (GST)

3 July 1978 South Africa initially implemented a General Sales Tax (GST) as its main indirect tax.

GST started at a rate of 4%, steadily increasing up to 12% on march 1985.

1991: Transition from GST to VAT

30 September 1991: VAT was introduced at a rate of 10%, replacing GST as a more efficient and broad-based form of indirect tax. The switch to VAT aimed to simplify tax administration and broaden the tax base.

1993: VAT Rate Increase

7 april 1993: The VAT rate was increased to 14% as part of adjustments to improve revenue collection.

2018: VAT Rate Increase to 15%

April 1, 2018: The VAT rate was raised from 14% to 15%, marking the first increase in 25 years. This change was part of a broader effort to address South Africa's fiscal deficit and raise revenue.

Here's a timeline of key events related to GST and VAT in South Africa:

• 3 July 1978 - 4% GST
• 1 March 1982- 5% GST
• 1 September 1982 - 6% GST
• 1 February 1984 - 7% GST
• 1 July 1984 - 10% GST
• 25 March 1985 - 12% GST
• 30 September 1991 - 10% VAT
• 7 April 1993 - 14% VAT
• 1 April 2018 - 15% VAT