The type of supply made by the vendor determines the VAT treatment, as well as whether input tax is deductible in respect of costs incurred to make the supply.
- Taxable supplies include both standard-rated (15%) and zero-rated supplies. A vendor is required to issue a tax invoice within 21 days from the date of making the taxable supply.
- Exempt supplies do not fall within the South African VAT net and are thus not subject to VAT.
- Out-of-scope supplies are the supplies which are not regulated by the VAT Act and include penalties, fines, and dividends.
Source: AJM Tax
Latest Posts in "South Africa"
- South Africa’s 5-Corner Peppol Integration to Modernize E-Invoicing and VAT Reporting by 2028
- New VAT Apportionment Reporting Requirements to SARS: Compliance and True-Up Adjustments Explained
- High Court Upholds Tax Court Ruling: Payroll Service Provider Not Liable for SDL and VAT
- Eswatini’s E-Invoicing Initiative: Advancing Tax Compliance and Digital Transformation by January 2028
- South Africa to End VAT Exemption on Low-Value Imports, Impacting eCommerce and Education
