Key VAT figures at a glance
| Item | Amount / Rate | Notes |
|---|---|---|
| Standard VAT rate | 15% | Effective 1 April 2018 |
| Zero-rated VAT rate | 0% | Basic foodstuffs, exports |
| Compulsory registration threshold | R1,000,000 | Taxable turnover in any 12 months |
| Voluntary registration threshold | R50,000 | Minimum annual turnover |
| Registration deadline | 21 business days | After crossing R1M threshold |
| Standard VAT period | 2 months | Bi-monthly returns (VAT201) |
| EFT payment deadline | Last business day of month | After end of VAT period |
| Bank payment deadline | 25th of the month | After end of VAT period |
| Late payment penalty | 10% | Of outstanding VAT amount |
| Record keeping requirement | 5 years | All tax invoices and records |
| Minimum tax invoice threshold | R50 | Full tax invoice required above this |
| Full client details required | R5,000+ | Client address required on invoice |
Zero-rated supplies (0% VAT)
Basic foodstuffs
Brown bread · Maize meal · Samp · Mealie rice · Dried mealies · Dried beans · Lentils · Pilchards/sardines in tins · Rice · Vegetables · Fruit · Vegetable oil · Milk (amasi, cultured milk) · Eggs · Edible legumes and pulses
Other zero-rated supplies
Exported goods · International transport services · Certain agricultural supplies · Fuel levy goods (petrol, diesel) · Sale of a going concern · Services to non-residents used outside SA · Certain municipal services
Exempt supplies (no VAT)
Residential property rental · Financial services (banking, insurance, investment) · Public road and rail passenger transport · Educational services (approved institutions) · Childcare services · Certain health services · Salaries and wages (not a supply) · Donations
VAT return periods
| Period type | Who qualifies | Deadline |
|---|---|---|
| Monthly | Turnover > R30M, or SARS direction | Last business day of following month |
| Bi-monthly (most common) | Standard — most businesses | Last business day of following month |
| 6-monthly | Turnover < R1.5M, qualifying criteria | Last business day of following month |
⚠ Disclaimer This is a summary guide for informational purposes only. South African VAT law is complex and subject to change. Always refer to the official SARS website (sars.gov.za) or consult a registered tax practitioner for advice specific to your situation.