VAT
Quick Answer
What is VAT?
VAT (Value-Added Tax) is a 15% tax on most goods and services, collected by registered businesses on behalf of SARS.
VAT explained
Registration is compulsory above R2.3 million of taxable supplies in 12 months (from 1 April 2026) and voluntary above R120,000. Vendors charge output VAT, claim input VAT and pay the difference on the VAT201.
Who it applies to: Businesses with taxable supplies above the thresholds, or those electing voluntary registration.
Cost: Registration is free; the tax is 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.