← Guides / South Africa

South Africa VAT Guide (Value-Added Tax)

South Africa's VAT system has a standard rate of 15% (increased from 14% in 2018). Zero-rated supplies include exports, basic food items (brown bread, maize, rice, vegetables, fruit), and petrol. Exempt supplies include financial services, education, and healthcare. The registration threshold is ZAR 1 million in annual turnover. Filing is done electronically via SARS e-filing. All amounts in ZAR.

South Africa's Value-Added Tax (VAT) is governed by the Value-Added Tax Act (No. 89 of 1991) and administered by SARS. It is a broad-based consumption tax on the supply of most goods and services. For related guidance, see our Corporate Tax Guide → and Personal Tax Guide →.

VAT Rates (2026)

  • Standard rate — 15%: Applies to the majority of taxable supplies of goods and services. The rate was increased from 14% to 15% on 1 April 2018. Examples include electronics, furniture, professional services, restaurant meals, construction, and motor vehicles.
  • Zero-rated supplies (0%): Certain supplies are taxed at 0%, allowing full input VAT recovery. Includes exports of goods and services, brown bread, maize meal, rice, fresh fruit and vegetables, dried beans, vegetable oil, milk, eggs, edible legumes, petrol, diesel, and paraffin. Illuminating paraffin is zero-rated to support low-income households.
  • Exempt supplies: Financial services (lending, credit, insurance, investment advice), educational services provided by approved schools and universities, healthcare services provided by registered medical practitioners and hospitals, and residential rental accommodation (not commercial property). Exempt suppliers cannot register for VAT or claim input credits.

VAT Registration

  • Compulsory registration: Any person (individual or business) whose taxable supplies exceed ZAR 1 million in any 12-month period must register for VAT within 21 days.
  • Voluntary registration: Businesses with taxable supplies between ZAR 50,000 and ZAR 1 million may register voluntarily. Holding companies and certain other entities may also register voluntarily.
  • Foreign suppliers: Foreign suppliers of electronic services (e-books, streaming, online courses, SaaS) to South African customers must register for VAT if their annual taxable supplies exceed ZAR 1 million. This is the "electronic services" regime.

Filing and Payment

  • Filing frequency: Most businesses file VAT returns every two months (bi-monthly). Categories: Category A (Feb, Apr, Jun, Aug, Oct, Dec), Category B (Mar, May, Jul, Sep, Nov, Jan), Category C (monthly — typically for large businesses or those with refund claims).
  • SARS e-filing: All VAT returns are filed electronically via the SARS e-filing platform. The return is due by the last business day of the month following the end of the tax period.
  • Input VAT: Registered vendors can deduct input VAT (VAT paid on purchases) from output VAT (VAT charged on sales). The difference is the net amount payable to or refundable by SARS.
  • Penalties: Late filing attracts a penalty of 10% of the VAT due. Late payment accrues interest at the prescribed rate (currently approximately 10.5% per annum).

Special Rules

  • Second-hand goods: VAT is payable on the sale of second-hand goods by non-vendors. The vendor can claim a notional input tax deduction.
  • Imports: VAT is payable at the border on imported goods (at 15% of the customs value plus duty).
  • Going concern: The sale of a business as a going concern may be zero-rated if certain conditions are met.
  • Invoice basis vs. payment basis: Most vendors use the invoice basis (VAT is accounted when the invoice is issued). Small vendors with turnover below ZAR 2.5 million may apply for the payment basis (VAT accounted when payment is received).