South Africa VAT compliance and rates

Updated on July 18, 2022

South Africa VAT compliance

Transactions in South Africa are subject to a strict set of regulations.

Among the topics covered are:

Requirements for South African invoices; Reporting and translation of foreign currencies; Credit notes and adjustments; and What records must be kept.

Invoices for VAT paid in South Africa

All enterprises with a South African VAT number are required to submit periodic VAT returns, outlining all taxable supplies (sales) and inputs (costs). If the turnover is over ZAR 30 million, the returns are monthly; otherwise, they are 4-monthly or 6-monthly (for farming alone). In the interim, corporations must file taxes every two months. Administrative trusts and property leasing firms can also take advantage of a separate annual return facility.

It is imperative that all VAT payments are made by this date, which is the 25th of each subsequent month following the end of each period. Through their Fiscal Representative, companies can enroll in E-filing and the payment deadline is the last day of the following month.

South Africa’s VAT Rates

VAT is charged at a regular rate of 15%.

There are exemptions for exports, certain consumables, and other goods (mainly certain financial services, residential accommodation and public transport).

Value Added Tax (VAT) rates in South Africa

Which products or services fall under this category?
about fifteen percent
Standard
Products and services that are not subject to tax
There is 0%
Agricultural products; residential lettings; road and rail transportation; financial services; money lending; retirement and medical benefits; international transportation.
To learn more about the VAT rates in South Africa, please visit this page.

See also  VAT Calculation Service – FAQs

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