Welcome to South Africa VAT Calculator 2025

SOUTH AFRICA VAT CALCULATOR

In South Africa, VAT (Value-Added Tax) is levied on taxable supplies of goods and services. Taxable supplies that are either subject to VAT at the standard rate or the zero rate. While most goods and services are taxed, there is a limited list that is either zero-rated or exempt from VAT.


✅Standard VAT Rate: 15% The majority of goods and services in South Africa are subject to the standard VAT rate of 15%.

✅Zero VAT Rate (0%): A small number of goods and services, such as exports, are taxed at the zero rate, meaning VAT is not added, but businesses can still reclaim VAT paid on inputs.

✅VAT-Exempted : Certain goods and services are exempt from VAT altogether. These include basic food items, financial services, and educational services, to name a few.

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South Africa Value-added Tax Rates and Much More

South Africa VAT (Value-added Tax)

Value-Added Tax (VAT) in South Africa was introduced on September 1, 1991, replacing the Sales Tax system. VAT is an indirect tax applied to the domestic consumption of goods and services. Currently, the standard VAT rate is 15%, with some goods and services subject to the zero rate (0%).

The South African VAT system is designed to be a broad-based tax that is paid by the final consumer, with businesses acting as intermediaries. Over the years, VAT has become a crucial revenue source for the South African government, contributing significantly to public finances.

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What is new in South African VAT

15 November 2024 – VAT Connect Newsletter Issue 18 Released:
The latest VAT Connect newsletter (Issue 18) is now available as of 15 November 2024. This issue covers the latest updates, trends, and important information regarding Value-Added Tax (VAT) in South Africa.

30 March 2023 – Modernization of VAT264 Form:
On 30 March 2023, the VAT264 form was modernized to simplify the process for vendors. The updated form is now aligned with the Taxation Laws Amendment Act, 2022 and makes it easier for businesses to declare VAT for second-hand goods. Access the new VAT264 declaration form for second-hand goods here.

1 July 2022 – Introduction of VAT Domestic Reverse Charge (DRC) on Valuable Metals:
Effective from 1 July 2022, South Africa introduced the VAT Domestic Reverse Charge (DRC) on valuable metals. This regulation, published in Government Gazette 46512 on 8 June 2022, impacts VAT on the supply of valuable metals. The DRC applies under Section 74(2) of the VAT Act, 1991 (Act 89 of 1991) and aims to simplify VAT compliance for businesses involved in the trade of valuable metals. Learn more about the VAT Domestic Reverse Charge (DRC) in the official regulations here.

South Africa VAT Registration

The RAV01 form (Registration, Amendments, and Verification) allows individuals, tax practitioners, and registered representatives to view and update legal entity registration details, including demographic and tax type information, on eFiling. For first-time registration, taxpayers or their legal representatives must visit a SARS branch. Sensitive changes such as updates to bank details or names (for companies and trusts) can be made online, while registration number or ID changes require a visit to a SARS branch. Additionally, the tax practitioner, trustee, or administrator must first activate their profile before making updates to the taxpayer’s registered details via the RAV01 form. This process streamlines the maintenance of tax information and ensures compliance with SARS regulations.

South African VAT Registration

Compulsory VAT Registration


In South Africa, businesses must register for VAT if their annual turnover exceeds ZAR 1 million. Once registered, these businesses are required to charge VAT on taxable supplies made in the course of their enterprise. You can calculate VAT with our easy to use South Africa VAT Calculator.

If a business expects its taxable turnover to exceed ZAR 1 million in the next 12 months due to a written agreement, it must also register as a VAT vendor and levy VAT on its supplies.

Non-Resident VAT Registration


Non-resident suppliers of electronic services must register for VAT if their taxable supplies exceed ZAR 1 million in any consecutive 12-month period.

Voluntary VAT Registration


Businesses with taxable turnover under ZAR 50,000 may choose to register voluntarily for VAT. If a business expects its turnover to exceed this threshold within 12 months, it can voluntarily register as a VAT vendor. Certain activities, such as construction or mining, may also qualify a business for voluntary registration.

Types of Taxable Supplies

  1. Standard-Rated Supplies: Most goods and services are taxed at the standard VAT rate of 15%.
  2. Zero-Rated Supplies: These supplies are taxed at 0% VAT, including exported goods and some essential items like basic foodstuffs and fuel products subject to the fuel levy.
  3. Exempt Supplies: Certain goods and services are exempt from VAT, such as financial services, residential rentals, and non-international passenger transport.

Electronic Services and Non-Resident Suppliers

Electronic services are broadly defined and include services provided through electronic means, such as the Internet. A non-resident supplier of electronic services will be considered as conducting business in South Africa if two of the following conditions apply:

  • The recipient has a residential address in South Africa.
  • The recipient has a business address in South Africa.
  • Payment is received from a South African bank account.

VAT on Imports

Goods imported into South Africa are subject to VAT, though certain items are exempt. Imported services used for taxable purposes are generally not subject to VAT, but services consumed for other purposes will incur VAT.

Key VAT Provisions

  • Zero-Rated Supplies: This includes exported goods, certain foodstuffs, fuel products, and specified farming goods. A zero-rated supply allows vendors to charge 0% VAT and claim a credit for VAT paid on related taxable supplies.
  • Exempt Supplies: Examples of exempt supplies include financial services, educational services, and residential rentals. No VAT credit is available for expenses incurred in making exempt supplies.

South African Customs Duties

In South Africa range from 3% to 45% on imported goods, with additional anti-dumping and countervailing duties of up to 150%. However, no customs duties are applied to trade within the Southern African Customs Union (SACU) – Botswana, Lesotho, Namibia, and Swaziland. Under the AfCFTA agreement, preferential trade started in January 2021, with new trade partners like Algeria, Egypt, and Kenya eligible to trade with South Africa from 31 January 2024.

Excise Duties in South Africa

Excise Duties are applied to locally manufactured and imported goods like tobacco, liquor, luxury items, and automobiles. Exported goods and certain products made from farming or forestry are exempt from excise duties.

List of Some Other Taxes in South Africa

  • Property taxes: Local municipalities impose property tax rates based on the municipal valuation of land and improvements, with higher rates for business-zoned properties.
  • Transfer duty: Transfer duty on immovable property sales is payable by the buyer, with varying rates depending on the purchase price, and exemptions apply for VAT-inclusive transfers.
  • Securities transfer tax (STT): STT is levied at 0.25% on the taxable amount for securities transfers, payable by the issuing company, which can recover the tax from the purchaser.
  • Payroll taxes: Employers must withhold PAYE based on employee remuneration and pay it monthly to SARS, with rates varying by income.
  • Skills Development Levy (SDL): A compulsory 1% payroll levy is payable by employers to fund education and training, with small businesses earning under ZAR 500,000 exempt.
  • Unemployment Insurance Fund (UIF) contributions: Employers and employees each contribute 1% of gross remuneration to the UIF, subject to a monthly cap of ZAR 177.12 per employee.
  • Compensation for Occupational Injuries and Diseases Act (COIDA) fund: Employers must contribute annually to the COIDA fund based on industry rates, with a salary cap of ZAR 506,473.
  • Donations tax: Donations tax is charged at 20% for assets under ZAR 30 million and 25% for those above, with an exemption of ZAR 10,000 for companies and tax relief for public companies and charities.
  • Vehicle emissions tax: From 1 April 2024, an environmental levy is imposed on vehicles based on CO2 emissions, with varying rates for different levels of pollution.
  • Fuel levy: The general fuel levy for 2024 is 394 cents per litre for petrol and 380 cents per litre for diesel, with an additional carbon tax levy effective from April 2024.
  • Electricity levy: A levy of 3.5 cents per kWh is applied to electricity generated from non-renewable sources, passed onto consumers by electricity producers.
  • Tyre levy: A levy of ZAR 2.30 per kilogram is applied to tyres to fund environmental initiatives.
  • Sugar tax: A levy of 2.1 cents per gram is charged on sugary beverages containing more than 4g of sugar per 100ml, effective from 1 April 2018.
  • Air passenger tax: A tax is added to international flight tickets, with rates of ZAR 100 for flights to neighboring countries and ZAR 190 for other destinations.
  • Carbon tax applies to entities emitting greenhouse gases (GHG), with a tax rate of ZAR 190 per ton of CO2-equivalent emissions in 2024, with a planned increase from 2025 onwards. Tax-free allowances reduce the effective carbon tax rate.