In a move welcomed by consumers and businesses alike, the South African government has suspended the proposed 0,5% increase in Value Added Tax (VAT), just days after many service providers, including Afrihost, issued updated invoices reflecting the change.
The announcement was made by the Minister of Finance on 24 April 2025. The suspension of the VAT hike came unexpectedly, prompting Afrihost and other service providers to rectify their billing procedures. Customers who had already received invoices with the additional 0.5% VAT will be issued discount notes to correct the difference.
In a customer advisory, Afrihost confirmed the change:
“Your latest invoice was generated before this announcement was made and, as such, reflects the additional 0.5% VAT increase. We will issue you with a discount note for the difference and you will be billed the correct pricing on 01 May 2025.”
While the reversal has led to short-term accounting adjustments, it has been generally praised for offering financial relief amid economic concerns, particularly benefiting lower-income households.
The move comes on the back of mounting criticism that a VAT increase, even as small as 0.5%, could disproportionately affect the working class and beneficiaries of government grants, including SASSA recipients.
Afrihost apologized for any confusion caused and reassured clients that corrections will be seamless.
