|Standard Rate||Reduced Rate||Other Rates|
|15%||N/A||Zero-rated (0%) and exempt|
The local name for VAT in South Africa is Value-added tax (VAT).
There is basically 1 VAT rate in South Africa:
- Standard VAT rate is 15%
For more information about (recent) rate change developments in South Africa, please click HERE.
Standard rate: 15%
This rate applies for all transactions that take place in South Africa, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Examples of goods and services taxable at 0%, with the right to deduct VAT
- Exports of goods and related services
- International transport of passengers and goods, and related services
- Services supplied outside South Africa and to foreign branches and head offices
- Services supplied directly in connection with land or any improvement thereto outside South Africa
- Services deemed to be supplied to a public authority or municipality
- Certain basic foodstuffs
- Sanitary towels (pads)
- Illuminating kerosene and leaded and unleaded gasoline
- Supply of gold coins issued by the reserve bank
- Transfer of a business as Transfer of a Going Concern
- Supply of fuel levy goods and certain fuels obtained from crude to be refined to produce fuel levy products
- Supply of intellectual property for use outside of South Africa
- Triangular supplies (the vendor supplies goods to a nonresident but delivers them in South Africa; special requirements apply)
- The supply of goods that have been imported and entered for storage in a licensed Customs and Excise storage warehouse but have not been entered for home consumption
- The supply of certain goods used or consumed for agricultural, pastoral or other farming purposes
Examples of exempt supplies of goods and services, without the right to deduct VAT
- Financial services, including Sharia finance premiums
- Fare-paying passenger transport by road or rail
- Educational services
- Child care
- Donated goods supplied by certain nonprofit (charitable) bodies
- Rental of residential accommodation
- Immovable property located outside South Africa
- The supply of goods by a non-established business before the goods are entered for home consumption, unless the non-established business applies in writing to the SARS to have the supplies zero-rated
- Certain supplies made by bargaining councils to their members are exempt from VAT. The exemption was previously limited to situations in which the supplies were covered by membership contributions
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 13, 2021.