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This guide provides an overview of VAT (Value Added Tax) in South Africa, covering applicable rates, registration requirements, invoicing rules, compliance obligations, and filing deadlines. It is intended for businesses engaging in transactions within South Africa or with South African customers.
South Africa’s VAT system is governed by the Value-Added Tax Act No. 89 of 1991, administered by the South African Revenue Service (SARS). VAT applies to most goods and services within South Africa, as well as on imports.
South African Rand (ZAR)
10 digits (e.g., 1234567890)
No, not required for foreign businesses.
Yes, available for businesses below the threshold (with minimum taxable supplies of R50 000 per annum)
| Rate | Rate Type | Description |
| 15% | Standard Rate | Applies to most goods and services |
| 0% | Zero Rate | Applies to specific goods such as basic foodstuffs, exports, and public transport |
| Business Type | VAT Registration Threshold |
| Resident Businesses | ZAR 1 million per annum |
| Non-Resident Businesses |
ZAR 1 million per annum *Subject to new exemption rules for electronic services providers mentioned below |
| Frequency | Requirements | Filing Deadline | Payment Deadline |
| Â Bi-monthly | This is the default filing category.
Category A filers: Periods ending January, March, May, July, September and November. Category B filers: Periods ending February, April, June, August, October and December. |
25th of the following month
*Last business day of the following month if filed via eFiling |
25th of the following month
*Last business day of the following month if paid via eFiling |
| Monthly | Category C
Vendors fall into this category if: – Taxable supplies exceed R30mil OR – Applied in writing OR – Placed by SARS due to continuous defaults |
25th of the following month
*Last business day of the following month if filed via eFiling |
25th of the following month
*Last business day of the following month if paid via eFiling |
| Half yearly | Category D
Vendors fall into this category if: – Farming activites with taxable supplies less than R1.5mil – Micro businesses |
25th of the following month
*Last business day of the following month if filed via eFiling |
25th of the following month
*Last business day of the following month if paid via eFiling |
| Annually | Category E
Vendors fall into this category if: – Companies or trust funds carrying on certain activites (such as the letting of fixed property amongst others) |
25th of the following month
*Last business day of the following month if filed via eFiling |
25th of the following month
*Last business day of the following month if paid via eFiling |
| VAT on Cross-Border Electronically Supplied Services | Yes |
| VAT Rate on Digital Services | 15% |
| Threshold for Registration | R1 million per annum
*New VAT rules to be implemented from 1 April 2025 for electronic services provided by electronic service providers. Non-resident vendors that only supply B2B electronic services will not have to register. |
| VAT on B2B Sales | Reverse charge mechanism applies |
South Africa mandates VAT on digital services based on the consumer’s location, and foreign businesses supplying digital services must comply with VAT requirements.
• Website supply, webhosting, and maintenance
• Supply of software and updates
• Streaming or downloading of music, films and games
E-invoicing is not mandatory for private sector businesses in South Africa, but electronic invoices must be in a format compliant with SARS guidelines.
South Africa requires digital reporting of VAT-related transactions through SARS-approved electronic submissions (SARS e-Filing).
Disclaimer: This guide is for informational purposes only and may not cover all aspects of South African VAT. Consult one of our tax professionals for specific guidance regarding your business.
| Pos. | Username | Country | Score |
|---|---|---|---|
| 1 | marko.kangasmaki@solnet.group | Finland | 100 % |
| 2 | Connor | Afghanistan | 92 % |
| 3 | Plrstrive | United Kingdom | 92 % |
| 4 | elkeg | Netherlands | 92 % |
| 5 | Cait | South Africa | 92 % |
| 6 | Chilli Dev | South Africa | 92 % |
| 7 | Brett | South Africa | 83 % |
| 8 | Quizard | South Africa | 83 % |
| 9 | Quinny Ness | South Africa | 75 % |
| 10 | Bronwynm | South Africa | 75 % |
