What is VAT (Value-Added Tax)?.

Businesses with taxable turnover exceeding R2.3 million in any 12-month period must register for VAT. Once registered, you charge VAT on sales (output VAT) and claim back VAT on business purchases (input VAT). The difference is paid to SARS every two months. Some goods like basic foodstuffs and exports are zero-rated, while financial services and residential rent are exempt.