The standard VAT rate applies to all supplies of goods or services (which do not qualify for the zero rate, an exemption or another exception).
The VAT registration threshold is ZAR1 million over 12 months.
A penalty of 10% is levied on the outstanding VAT amount in the case of a late payment by a vendor.
0% - 60%
The rate of customs duty is often determined as a percentage of the value of the goods, at a rate ranging from 0% to as high as 60%.
Southern Africa Region
The interpretation of Value-Added Tax (VAT) legislation in Africa often creates uncertainty for businesses trading in and across Africa. African countries understand the importance of having a tax base, VAT making up a large portion of revenues collected. Not being VAT compliant may lead to penalties and additional tax.
Although it may take time to fully understand the VAT environment across Africa, consider that VAT legislation is seldom if ever tested in tax courts across Africa. VAT legislation would have been effective since date of the implementation of the VAT legislation.
Standard VAT rates for each country on all the taxable supplies.
How compliance in VAT is treated in each country.
Taking a look at some of the VAT rules in line with debts, land and buildings, leasing and other factors.
Some countries have other indirect taxes charged on goods.
Years of talks have yielded the African Continental Free Trade Area Agreement (AfCFTA) which was ratified on 30 May 2019. AfCFTA is expected to change the future of African trade from historical ties with Europe, the Americas and Asia to African trade with itself. Africa is resolute in its desire to tackle the long-standing challenges of tariff and non-tariff barriers that have inhibited the movement of goods, services, capital and people within the continent.
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This guide provides an overview of the application of VAT in Africa and does not contain a comprehensive summary of all VAT principles applying in each country.