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Massive VAT problem for South Africa | SA News

Luke Fraser
 ·8 Jan 2026

The most recent data from the South African Revenue Service (SARS) indicate that undisputed tax debts have reached a record high of nearly R500 billion, with Value-Added Tax (VAT) being the primary concern.

The most recent SARS Debt Collection Data from December 2025 shows a total of R63 billion in cash collected from debt, thus far.

SARs are ahead of their collection targets to achieve R100 billion in cash collections from debt from April 2025 to March 2026.

However, there is still a R20 billion shortfall against its revenue…

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