How vat / sales tax works in South Africa
South African VAT defaults to 15% on goods and services, with vendors charging output tax, deducting input tax, and filing bi-monthly VAT201 returns through eFiling.
Exports, international transport, and defined basic foodstuffs zero-rate with credit recovery, while financial services, residential rents, and public transport are largely exempt.
Registration follows ZAR 1 million of taxable turnover in twelve months with voluntary entry at ZAR 50,000, and electronic services by foreign suppliers face dedicated collection rules.
Tax rates at a glance
- Standard VAT
- 15%
- Zero-rated supplies
- 0%
- Exempt supplies
- Exempt
- Registration line
- ZAR 1 million
- Voluntary entry
- ZAR 50,000
- Foreign e-services
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersFreelancersExpatsCross-border traders
Watch out for
- Zero-rated basic foods preserve credits while exempt finance and rents block them, so grocery-versus-services classification changes pricing math.
- Foreign e-service and marketplace rules pull offshore vendors into collection from the first rand of qualifying sales.
- Voluntary registration at ZAR 50,000 suits input-heavy starters but adds bi-monthly compliance that micro-traders should price in.
- Diesel refunds, second-hand-goods notional credits, and apportionment for mixed suppliers add specialist layers beyond the headline rate.
Frequently asked questions
What is the VAT rate in South Africa?
South Africa applies 15% standard VAT in 2026, with zero-rating for exports, international transport, and basic foods and exemptions for finance, residential rent, and public transport.
When must a South African business register for VAT?
Past ZAR 1 million of taxable turnover in twelve months, with voluntary registration from ZAR 50,000. Foreign e-service suppliers follow dedicated registration tracks.
How often are SA VAT returns filed?
Bi-monthly as standard through eFiling, with monthly filing for large turnovers. Payment and return deadlines follow the assigned tax period.