South Africa VAT compliance and rates

Updated on July 20, 2022

South Africa VAT compliance

The recording and processing of transactions in South Africa is governed by a complex set of rules.

The following are some pointers on how to use them:

 

Invoice requirements in South Africa;

Transcribing and translating exchange rates;

Give credit where credit is due; and

Accounting records that must be kept.

South Africa VAT returns

All businesses in South Africa with a VAT number are required to file periodic VAT returns outlining all taxable supply (sales) and inputs (costs). If turnover is larger than ZAR 30 million, returns are monthly; if less than ZAR 1.5 million, returns are 4-monthly or 6-monthly (farming only). In the interim, corporations must file taxes every two months. Special annual return facilities are available for administrative trusts and property leasing firms.

The 25th of the month following the end of the period is the deadline for making VAT payments. Through their Fiscal Representative, companies can enroll in E-filing and the payment deadline is the last day of the following month.

VAT Rates in South Africa

The standard rate of VAT is 15%. There are exemptions for exports, certain consumables, and other goods (mainly certain financial services, residential accommodation and public transport).