Current VAT Rate in South Africa (2025)

Standard Rate: 15% | Currency: ZAR

South Africa VAT Calculator

Current South Africa VAT Rate: 15%

South Africa VAT Rates Overview

Complete breakdown of Value Added Tax rates in South Africa

Current VAT Rates

Rate Type Percentage Applies To
Standard Rate 15% Most goods and services
No reduced rates

History of VAT Changes in South Africa

Timeline of Value Added Tax rate modifications

Historical VAT Rate Changes

  • 2025: Current standard rate of 15%
  • Historical data being compiled
  • 2025: Current standard rate of 15% (no change)
  • 2020: Temporary reduction during pandemic
  • 2011: Rate increased from X% to Y%
  • 2008: Temporary reduction during financial crisis
  • 1991: VAT system introduced at X%

Economic Impact

VAT contributes approximately 20-30% to South Africa's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Africa region.

Exemptions and Reduced Rates in South Africa

Special VAT rules and exemptions for specific sectors

Zero-Rated Items

The following items are zero-rated for VAT in South Africa:

  • Exports of goods and services
  • International transportation
  • Some basic food items
  • Children's clothing (some countries)
  • Books and newspapers (some countries)
  • Prescription medications
  • Exports of goods and services
  • International transportation
  • Basic food items (specific list varies)
  • Children's clothing and footwear
  • Books and newspapers
  • Prescription medications

VAT Exempt Items

The following are exempt from VAT in South Africa (no VAT charged, no input VAT recovery):

  • Financial services
  • Insurance services
  • Healthcare and medical services
  • Education and training
  • Postal services
  • Charitable activities
  • Financial services
  • Insurance services
  • Healthcare and medical services
  • Education and training
  • Postal services
  • Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in South Africa:

  • No reduced rates apply in this country

VAT for Businesses in South Africa

Essential information for companies operating in South Africa

VAT Registration

  • Registration Threshold: Varies ZAR annual turnover
  • Voluntary Registration: Available below threshold
  • Registration Process: Online via tax authority website
  • Processing Time: Typically 2-4 weeks

VAT Returns and Payment

  • Filing Frequency: Varies
  • Filing Deadline: End of month following period
  • Payment Methods: Bank transfer, online payment
  • Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

  • Intra-EU Trade: Not applicable (non-EU country)
  • Imports: VAT payable at point of entry
  • Exports: Generally zero-rated
  • Digital Services: Special rules may apply

Compare VAT Rates

VAT rates in neighboring and similar economies

Nearby Countries

🇪🇬 Egypt

Standard Rate: 14%

🇳🇬 Nigeria

Standard Rate: 7.5%

Frequently Asked Questions

Common questions about VAT in South Africa

What is the current VAT rate in South Africa?

The standard VAT rate in South Africa is 15% as of 2025. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in South Africa?

To add VAT: multiply the net amount by 15%. To remove VAT from a gross amount: divide by 1.15. Use our calculator above for instant results.

Who needs to register for VAT in South Africa?

Businesses with annual turnover exceeding Varies ZAR must register for VAT. Voluntary registration is available for businesses below this threshold.

Can I reclaim VAT in South Africa?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country.