South Africa VAT Rate 2026: 15% Standard Rate

How Much Is VAT in South Africa?

The standard VAT rate in South Africa is 15% in 2026, administered by the South African Revenue Service (SARS). There are no reduced rates — instead, a defined list of basic foodstuffs is zero-rated, so no VAT is charged on them at all. The 15% rate has applied since 1 April 2018, when it rose from 14%; a phased increase announced in the 2025 Budget was withdrawn before it took effect, leaving 15% in place.

Registration with SARS is compulsory once taxable turnover passes ZAR 2.3 million in any 12-month period (raised from ZAR 1 million on 1 April 2026), with voluntary registration available above ZAR 50,000.

How to calculate South Africa VAT

To add 15% VAT to a net (tax-exclusive) price, multiply it by 1.15. To remove VAT from a gross (tax-inclusive) price, divide it by 1.15.

• Add VAT: ZAR 100 net × 1.15 = ZAR 115 gross (that is ZAR 15 of VAT)
• Remove VAT: ZAR 115 gross ÷ 1.15 = ZAR 100 net (that is ZAR 15 of VAT)

Use the South Africa VAT calculator above for any amount, or compare South Africa with every other country in our VAT rates by country table.

Current VAT Rates (2026)

Key VAT milestones

• 2026: Compulsory registration threshold raised from R1 million to R2.3 million and voluntary threshold to R120,000 from 1 April 2026
• 2025: Budget proposal to raise VAT to 15.5% and then 16% was withdrawn; rate kept at 15%
• 2019: VAT on foreign electronic services broadened to almost all e-services from 1 April 2019
• 2018: Rate raised from 14% to 15% on 1 April 2018
• 1993: Rate raised from 10% to 14%
• 1991: VAT introduced at 10% on 30 September 1991, replacing general sales tax

Is the VAT rate the same everywhere in South Africa?

The same 15% rate applies across all provinces. Supplies to enterprises in customs-controlled areas of Special Economic Zones can be zero-rated.

Good to know

South Africa has a single 15% rate with no reduced rates. Relief for low-income households comes from zero-rating a basket of about 20 basic foods rather than a lower rate.

The 2025 Budget initially proposed raising VAT to 15.5% and 16%, which triggered a political and legal dispute; the increase was scrapped and the 2026 Budget kept the rate at 15%.

Vendors with supplies between R120,000 and R2.3 million that were registered under the old thresholds may receive deregistration notices from SARS but can object to stay registered.

Zero-rated supplies (0%)

VAT is charged at 0%, but the seller can still recover input VAT on related costs:

• Basic foods: brown bread, maize meal, samp, rice, dried beans, lentils, milk, eggs, fresh fruit and vegetables, vegetable oil, pilchards
• Petrol and diesel (subject to the fuel levy instead)
• Illuminating paraffin
• Sanitary pads
• Exports of goods and international transport services
• Sale of a business as a going concern

VAT-exempt supplies

No VAT is charged, and the seller generally cannot recover input VAT on related costs:

• Financial services such as interest, life insurance and fees on some financial instruments (fee-based services are taxable)
• Residential accommodation rental
• Road and rail public passenger transport
• Educational services by registered schools and universities
• Childcare services

Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with South African Revenue Service (SARS) before relying on them.

Cross-border rules

Digital services and e-commerce: Foreign suppliers of electronic services (streaming, apps, e-books, SaaS and most other e-services) must register once South African supplies exceed R1 million in 12 months and charge 15% VAT, including on many B2B supplies.

Tourist VAT refunds: Yes: foreign tourists can reclaim VAT on goods exported as accompanied baggage through the VAT Refund Administrator, with a minimum total purchase of R250.

For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.

Nearby Countries

What is the current VAT rate in South Africa?

The standard VAT rate in South Africa is 15% in 2026. Other rates in force: 0% (zero rate). See the rates table above for exactly what each rate covers.

How do I calculate VAT in South Africa?

To add 15% VAT, multiply the net price by 1.15. To remove it from a VAT-inclusive price, divide by 1.15; the difference is the VAT. The calculator at the top of this page does both.

What is the VAT registration threshold in South Africa?

From 1 April 2026, registration is compulsory once taxable supplies exceed R2.3 million in 12 months, up from R1 million. Voluntary registration requires at least R120,000.

Which foods are zero-rated for VAT in South Africa?

Zero-rated foods include brown bread, maize meal, samp, rice, dried beans, lentils, milk, eggs, fresh fruit and vegetables, vegetable oil and tinned pilchards.

Where these figures come from

• SARS: Value-Added Tax
• SARS: Budget 2026 FAQs
• Standard Bank: VAT threshold increases to R2.3 million