VAT, or value-added tax, is a consumption tax placed on a product whenever value is added at each stage of the manufacturing process. The South African government has set the VAT rate at 15% for 2019. However, there have been some changes to what items are eligible for VAT and how it is applied.
In South Africa, the VAT rate is set at 14% and has been since 1993. The value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the manufacturing process. The end consumer ultimately bears the cost of the tax, with businesses passing on the cost to customers through higher prices.
South Africa’s VAT system is designed to be broad-based and easy to administer. All businesses that are registered for VAT must charge VAT on their taxable supplies, whether they are local or foreign entities.
