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, with no reduced rates. It applies to most goods and services sold in South Africa. Standard VAT/GST rates worldwide range from around 5% to 27%.

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

Historical VAT Rate Changes

• 2026: Current standard rate in force
• 2018: Standard rate raised to 15%
• 1991: VAT introduced at 10%

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.

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
• 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

Reduced Rate Applications

Items subject to reduced VAT rates in South Africa:

• No reduced rates apply in this country

South Africa requires VAT registration once taxable turnover exceeds ZAR 2.3 million over 12 months (raised from R1 million on 1 April 2026); voluntary registration is available from R50,000. Always confirm current thresholds and deadlines with the South African Revenue Service (SARS), as they are reviewed periodically.

VAT Registration

• Registration Threshold: ZAR 2.3 million (from 1 April 2026)
• Voluntary Registration: Available below threshold
• Registration Process: Online via tax authority website
• Processing Time: Typically 2-4 weeks

VAT Returns and Payment

• Filing Frequency: Every two months (monthly if turnover > ZAR 30 million)
• 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

For background on how the buyer accounts for VAT on intra-EU and cross-border B2B supplies, see the reverse charge mechanism. For B2C digital sales and low-value imports, see VAT on digital services and cross-border e-commerce.

Nearby Countries

What is the current VAT rate in South Africa?

The standard VAT rate in South Africa is 15% as of 2026. 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?

South Africa requires VAT registration once taxable turnover exceeds ZAR 2.3 million over 12 months (raised from R1 million on 1 April 2026); voluntary registration is available from R50,000.

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 — see our guide to VAT refunds for tourists and non-resident businesses.