The standard rate of VAT in South Africa is 15%.
The standard rate of VAT is 15%. Exports, certain foodstuffs and other supplies are zero-rated, and certain supplies are exempt (mainly certain financial services, residential accommodation and public transport).
- Zero-rated supplies are taxed at a rate of 0%. Such supplies include:
- exports,
- certain foodstuffs and other supplies.
VAT on property sales is charged at the standard rate (15%) if the price is more than R1 million. It is charged at a reduced rate of 5% if the price is between R500,000 and R1 million, or at no charge if the price is less than R500,000, provided that the buyer intends to use it as his or her primary place of residence.
For example: If a house costs R1.5 million, then 15% VAT will be added to that amount.
If you are buying property in South Africa, then it’s important to understand what percentage of VAT you will have to pay on top of your purchase price. A lot depends on both where you buy your home and what type of property it is – for example, whether it’s residential or commercial/industrial – but there are also many other factors which affect how much Vat may be payable by law when buying a house in South Africa.
If you import goods into South Africa for commercial purposes, you must pay VAT on them.
Taxable persons importing goods for commercial purposes into South Africa must pay VAT.
If you import goods for personal use, you will not be required to pay VAT.
You are also exempt from paying VAT if you intend to resell such goods in the course of your business or profession (the sale must be to another person who is engaged in a similar trade).
The following categories of people are not required to collect and account for applicable taxes:
- Residents who purchase goods from outside South Africa and import them into the country on behalf of someone else;
- Non-residents buying goods outside South Africa that they intend to take out with them before leaving the country; and
- National Revenue Service officers performing their official duties at ports of entry or exit where they inspect imports or exports, respectively
