Output Tax
Quick Answer
What is Output Tax?
Output tax is the VAT a registered vendor charges on its sales and owes to SARS.
Output Tax explained
The VAT201 nets output tax against input tax: you pay the difference. Collecting output VAT without being registered is unlawful.
Who it applies to: Registered VAT vendors.
Cost: N/A – collected from customers.
Related terms and guides
Official source: SARS (South African Revenue Service)
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.