New VAT Rate - Sage Pastel Accounting

[Neville Bailey]

If you are using Sage Pastel 50c (V19), Sage will shortly be releasing a new build (19.4.6) which will automate the switch over to the new VAT rate of 15.5% on 1 May 2025 - apparently on Friday 11 April.

If you are using an older version of Pastel, I will be providing a guide on how to set up your system to accommodate the new VAT rate.

Contact me via email for further details.

[Neville Bailey]

IF YOU ARE USING SAGE PASTEL 50c (V19)

Download Build 19.4.6 from the following link: https://pastelupdate.sagesouthafrica.co.za.

Select either the Partner or Xpress link, depending on what you are using. Once downloaded, make a backup of your company, then close Pastel on all machines, and install the new Build. When you open your company for the first time, you will be prompted to rebuild your data files. Once that has been completed, you will see the following message appear:





Click on OK. That’s all you need to do. When you open your company on 1 May 2025, you will get a notification that all your VAT settings will be changed to the new rate, where applicable.

IF YOU ARE USING A VERSION OF PASTEL PRIOR TO V19

Do the following now, before 1 May 2025:

• Go to Setup…Tax…General Settings.
• Open the Percentages tab.
• Wherever you see a VAT rate of 15%, change the End Date to 30/04/25.
• Insert the following new lines:

On 1 May 2025, do the following before you start processing:

• Make a backup of the company.
• Go to Edit…Tax Type Adjustment.
• Click on Next.
• Select General Ledger and ensure the range is from 0001/000 to 9999/999.
• Click on Next.
• Under Old Tax Type Settings, click on the dropdown and select Default Tax Type and then select the Tax Code that you are currently using for Standard VAT 15%.
• Under New Tax Type Settings, click on the dropdown and select Default Tax Type and then select the new Tax Code 23 for Standard VAT 15.5%.
• Click on Next and then Process and Finish.
• Repeat the above steps for Customers, Suppliers and Inventory, ensuring you select the full range of accounts in each case.

Let me know if you have any queries regarding the above, or whether you would prefer to set up a remote session with me to assist you with the above.