As you probably already know, the Minister of Finance announced a VAT Rate increase from 14% to 15% during his budget speech on 21 February 2018.
The effective date for this adjustment is 1 April 2018.
To ensure that we comply with the revised VAT regulations, all fees which are subject to VAT will be adjusted in line with the revised VAT rate effective 1 April 2018.
In line with the Code of Banking Practice and National Credit Act, our Virgin Money credit card customers have been informed of the intent to revise the fee structures via a statement message and the virginmoneycard.co.za website.
Updated pricing brochures will be published on virginmoneycard.co.za on 1 April 2018.
2018 Pricing just came into effect, are we having another pricing increase?
No, this change does not constitute another pricing increase. Our 2018 fee structures came into effect on 1 January 2018 and they have not changed.
We will be revising our fee structures effective 1 April 2018 in response to a change in the South African VAT rate announced by the Minister of Finance on 21 February 2018. We remain confident that our 2018 pricing structures are competitive and offer value for money to our customers.
How much more can I, as a Virgin Money credit card customer, expect to pay?
Our fee structures will only be adjusted to accommodate the revised VAT rate. Therefore no customer will be impacted by more than the change in the VAT rate from 14% to 15%.
For example a fee of R114,00 (14% VAT Included) will be adjusted to R115,00 (15% VAT Included). This means a 0.877% impact on the average customer.
So there you have it.
A 0.877% impact on the average customer. Could be worse, but now might be a great time to keep an eye on your own budget and take charge of your finances by knowing your credit score.
Virgin Money South Africa (Pty) Ltd supported by Absa Bank Limited, Reg no 1986/004794/06
An Authorised Financial Services Provider Registered Credit Provider (NCRCP7)