Tax & Compliance
What is VAT (Value-Added Tax)?
Definition
VAT is a consumption tax of 15% levied on most goods and services in South Africa, collected by businesses on behalf of SARS.
Explained Simply
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.
Free Tool
VAT Calculator
Calculate VAT amounts for invoices, expenses and financial planning. Support for standard and zero-rated supplies.
Related Guide
How-To: Register For Vat
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