The next VAT increase will be effective from 1 May 2025 at a rate of 15.5%.
At the 2025 Budget Speech an announcement was made that there will be 0.5% point increases to the VAT rate on 1 May 2025 and 2026. These changes have a large impact on businesses, requiring updates to prices, billing, services, and more.
To prepare for this change, DataTill provides functionality to update your Default Tax Rates to ensure that there is a minimal impact to billing. This guide will explain how to easily update your tax rate and continue operations with little to no impact.
Sage
- Navigate to your company’s VAT Settings
- Select Add a Line Below to create a new VAT Rate Line
- Give the new tax type a name and VAT percentage
- Select Save/Save and Close
NB: Remember to set this new VAT rate as the default on 1 May 2025.
DataTill
Once the new tax type has been created on Sage, the VAT rate can be synced and created on DataTill.
- Navigate to Billing -> Billing Setup -> Default Tax Rates
- Select Sync Tax Rates
- Confirm syncing the tax rates from Sage
- After successful syncing of the Tax Rates, users can now add a new default tax rate. Select Add Default Tax Rate to begin
- The form will appear. Ensure the effective date is set to when the new tax rate will be effective (1 May 2025 in this case). Set the Tax Rate to the desired Rate (15.50%). Finally, Select the Tax Rate created earlier in Sage.
- Select Add Default Tax Rate to complete.
Now that the new VAT rate has been created both on Sage and DataTill, all billing items created after the set effective date will include the new rate.