The Draft Taxation Laws Amendment Bill (2025) proposes a major shift: from 1 January 2026, private schools will no longer be allowed to register as VAT vendors. While this proposal is not yet final, the implications could be far-reaching.
Currently, many private schools reclaim VAT on uniforms, tuck shop sales, facility rentals, and more. If the new law passes, these schools will be forced to deregister for VAT—triggering an “exit tax” that treats their buildings, sports fields, and other assets as if they were sold. The result? Large, unexpected VAT bills that could run into the millions.
This change could impact school budgets, delay infrastructure upgrades, and even lead to increased school fees for parents. Meanwhile, universities and colleges remain exempt—raising questions about fairness and the future of education funding in South Africa.
Public comments on the draft bill close on 12 September 2025. Now is the time to have your say.
This poll is now closed.
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