VAT in South Africa: rate, registration and filing
The 15% standard rate of VAT in South Africa, who must register with South African Revenue Service (SARS), what a VAT invoice must show, and when returns and payments are due.
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Updated for 2026
Last reviewed September 2026
The rate
The standard rate in South Africa is 15%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Registration becomes compulsory once taxable turnover passes the threshold South African Revenue Service (SARS) sets, measured over a rolling period. Below it, registration is usually voluntary, which makes sense if your customers are registered businesses that can reclaim what you charge.
Compulsory once taxable supplies exceed R2.3 million in any 12 months, raised from R1 million on 1 April 2026, the first change in seventeen years. Voluntary registration starts at R120,000, raised from R50,000. Vendors now below the threshold may apply to deregister.
How to register
Register with South African Revenue Service (SARS) on SARS eFiling and the SARS MobiApp using your Tax reference number. Once registered you receive a VAT registration number or certificate, and from that date you must charge VAT on taxable sales, issue compliant invoices and file returns even when nothing is due.
Charging VAT on an invoice
Show the net amount, the VAT rate, the VAT amount and the gross total, with your registration number in the header. Prices quoted to consumers should include VAT; prices quoted to businesses usually exclude it and say so. The South Africa calculator adds or removes VAT and shows the arithmetic.
The words Tax Invoice.
The seller's VAT number, and the buyer's VAT number on invoices above R5,000.
Full tax invoices above R5,000; abridged invoices are allowed below.
Filing and paying
Returns are periodic, most often monthly or quarterly, and report the VAT you charged less the VAT you paid on purchases. The difference is paid to South African Revenue Service (SARS) by the return deadline; a repayment is claimed when purchases exceed sales.
Most vendors file every two months on eFiling; returns and payment are due by the last business day of the month after the period ends (the 25th for manual payment).
Penalties for getting it wrong
Late registration, late returns and late payment each attract penalties and interest with South African Revenue Service (SARS). Charging VAT while unregistered is an offence in most countries. If you missed the threshold, register now and declare the back period.
A 10% penalty plus interest on late payment, and administrative penalties for late returns.
Questions people ask
How do I add VAT to a price?
Multiply the net price by 1.15. A R100 sale at 15% carries R15 of VAT and totals R115.
How do I remove VAT from a total?
Divide the gross by 1.15 to get the net, then subtract to find the tax. Dividing, not taking a percentage off, is the step people get wrong.
Should I register voluntarily?
If most of your customers are registered businesses, yes: they reclaim what you charge and you reclaim what you pay. If your customers are consumers, registration raises your prices by the tax rate or cuts your margin.
What if I am not registered?
Do not charge VAT and do not show a VAT line. State on the invoice that no VAT was charged. The generator prints that line when the toggle is off.
Written from published tax-authority guidance and reviewed on 2026-09-03. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with South African Revenue Service (SARS) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with South African Revenue Service (SARS).
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Invoices, quotations, purchase orders, credit notes and waybills in ZAR, with VAT and the Tax reference number on the document. Plus a VAT calculator and a salary tax calculator. Everything runs in your browser and nothing is uploaded.