How Much Is VAT In South Africa?

South Africa’s VAT rates

15% is the typical VAT rate. Exports are zero-rated, as are some foodstuffs and other commodities, while other supplies are exempt.

What is VAT?

VAT is the standard name for value-added tax. The value-added tax (VAT) is imposed on the economy’s consumption of goods and services. A firm that operates an enterprise, as defined in section 1(1) of the VAT Act, must register for VAT to generate revenue for the government. In doing so, the company will impose VAT on imports of goods and services and on the supply of products and services it makes (subject to certain conditions).

Returns for South African VAT

All businesses with a South African VAT number must file regular VAT returns that include all taxable purchases (sales) and inputs (costs). If turnover is more than ZAR 30 Million, returns are paid monthly; if it is less than ZAR 1.5 Million, they are paid every four or six months (only for farming).

Companies must file bimonthly returns in between. Additionally, there is a unique yearly return facility for administrative trusts and businesses engaged in real estate leasing.

How can I get paperwork about VAT?

Except for Legal Counsel publications such as published Proclamations, Regulations, and Government Notices and the archived VATNews, the SARS website does not carry outdated or discontinued materials. The Legal & Policy Archive, provided for study and reference reasons, contains the VATNews publications.

Who needs to sign up for VAT?

Anyone who conducts business, as described in section 1(1) of the VAT Act, is eligible to register for VAT. A person is a defined term that can refer to a business, an individual, a partnership, a trust fund, or a local government. Follow the application procedure outlined on our website, explaining how to register for VAT.

A person must register for VAT if the number of taxable supplies produced or made in any successive twelve-month period exceeds R1 million.

If the amount of taxable supply made or provided in any 12 months does not exceed R1 million, a person may also opt to register voluntarily.