Overview
Value-added tax (VAT) was introduced in South Africa with effect from 30 September 1991 by way of the Value-Added Tax Act 89 of 1991 (VAT Act) to replace sales tax. The VAT system is administered by the South African Revenue Service (SARS).
The Head of SARS is the Commissioner. The VAT rate in South Africa is 15%.
Since 1 October 2012, the administration of tax acts, including the VAT Act, is mainly regulated by the Tax Administration Act 28 of 2011. Certain VAT administration provisions are, however, still contained in the VAT Act.
Release date: May 2023
Rates and scope |
The standard VAT rate of 15% applies to all supplies of goods or services (which do not qualify for the zero rate, an exemption or another exception), the importation of goods by any person, and (in certain instances) the importation of services. There is no higher VAT rate or any reduced VAT rate (except for the zero rate). VAT is levied on ‘taxable supplies’, which are supplies of goods or services made by a ‘vendor’ (a person registered or required to be registered as a VAT vendor with SARS) in the course or furtherance of an enterprise carried on by the vendor wholly or partly in South Africa. The concept of ‘goods’ includes corporeal movable goods, immovable (fixed) property, and electricity. The concept of ‘services’ includes anything done or to be done, the granting, assignment, cession or surrender of any right, or the making available of a facility or advantage. Money and tax stamps are neither goods nor services. The issue, acquisition, collection, buying or selling or transfer of ownership of any cryptocurrency is considered to be a ‘financial service’ and not money or currency. A ‘supply’ includes performance in terms of a sale, rental agreement, instalment credit agreement, and all other forms of supply, whether voluntary, compulsory or by operation of law. |
VAT registration |
Compulsory registration The registration threshold is ZAR 1m (± USD66,500). If a person’s total annual value of taxable supplies has exceeded this threshold during the past 12 months, or there are reasonable grounds to expect that the threshold will be exceeded during the following 12 months (there is a contractual obligation in writing motivating that this threshold will be exceeded), the person must apply for registration. A ‘person’ includes natural persons, legal persons (e.g. companies), bodies of persons (e.g. partnerships and joint ventures), public authorities, municipalities, estates, and trust funds. Registration is not required where the threshold will be exceeded solely as a consequence of the cessation of, or substantial and permanent reduction in, the size or scale of an enterprise, the replacement of capital assets or abnormal circumstances of a temporary nature. Provisions have been introduced, where foreign suppliers of electronic services are required to register where supplies are made to residents of South Africa, or recipients who have a business, residential or postal address in South Africa, or payment is made from a South African bank account, and the value of these supplies has exceeded ZAR 1m (± USD66,500). At least two of these three provisions should be satisfied. |
Voluntary registration A person may apply for voluntary registration if:
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Group and branch registration Different companies in the same group cannot be registered as a group under one VAT registration number. Separate enterprises carried on by a vendor or branches, or divisions of an enterprise carried on by a vendor, may be registered separately. |
Non-residents There are two instances where non-residents may be required to register for VAT in South Africa. Firstly, where there is an enterprise activity being conducted in South Africa and the value of the associated supplies meets the criteria for a compulsory registration. Secondly, where non-residents are suppliers of electronic services. For a non-resident to register as a VAT vendor in South Africa, they must furnish SARS with the particulars of their fiscal representative (who must be a natural person and reside in South Africa), and their bank account details in South Africa. However, these requirements are not required for non-residents who register for VAT due to providing electronic services, and the fiscal representative may be a foreigner. |
Application for registration A person must complete form VAT 101 and submit it to the local office of SARS. The application for registration must be accompanied by the following documents:
There are no penalties for late registration or for failing to do so. However, output tax plus penalties and interest will be due on supplies that have not been declared at the time the business should have been registered for VAT purposes. The registration number of resident and non-resident businesses consists of ten digits, starting with a ‘4’, for example, 499 9999 999. |
Application for an electronic services registration The registration process for foreign suppliers of electronic supplies can be done via email. The following information, translated into English, will need to be submitted (and, thus, attached to the email):
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Deregistration A vendor whose taxable supplies do not exceed the ZAR 1m limit has the option to deregister. A vendor must apply for deregistration if their taxable supplies did not exceed the annual ZAR50,000 voluntary registration limit, or when they cease to carry on an enterprise. SARS may deregister a vendor who voluntarily registered if they no longer have a fixed place of business, a bank account or proper accounting records. Upon deregistration the vendor must pay output tax on all assets of the enterprise held by them immediately prior to their deregistration. |
Output tax |
Calculation of VAT Output tax is calculated by applying the tax fraction (15/115) to the price charged. Advertised prices must include VAT. If the VAT-inclusive and VAT-exclusive prices are advertised or quoted, both prices must be advertised or quoted with equal prominence. Prices charged for taxable supplies are deemed to include VAT, whether or not the vendor has included VAT in the price. |
Exempt supplies Supplies of the following goods or services are exempt:
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Zero-rated supplies Supplies of the following goods or services are zero-rated, provided that all documentary and procedural requirements have been met. Zero-rated goods
Zero-rated services
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Input tax |
Input tax allowed Input tax incurred on goods or services acquired for the purpose of consumption use or supply in the course of making taxable supplies (including zero-rated supplies) is generally deductible as input tax, provided all documentary requirements are met and the deduction is made in time (generally speaking within five years). VAT incurred in the making of exempt (without credit) supplies cannot be deducted as input tax. |
Input tax expressly denied The deduction of VAT incurred is expressly denied as input tax in the following circumstances:
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Partial exemption Where goods or services are acquired for making both taxable supplies and exempt (without credit) supplies, an apportionment of VAT incurred must be made. The standard method for calculating the apportionment is the turnover-based method. If the turnover-based method does not give a fair result, or if the vendor wants to apply another method, SARS’ written approval must be obtained. If the intended use of goods or services acquired is more than 95% taxable supplies, the VAT incurred may be deducted in full. |
Adjustments When the application or use of goods or services is changed subsequent to the acquisition thereof, the amount of VAT that was originally deducted as input tax may no longer be equitable and appropriate in view of the subsequent application of the goods or services. Adjustments must be made to the vendor’s output tax where:
Adjustments must be made to the vendor’s input tax where:
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Pre-registration and post-deregistration VAT Under certain circumstances, a company can claim input tax on goods and services acquired by a person on behalf of the company before incorporation. A person who has incurred VAT on the acquisition of goods or services prior to their VAT registration date, and who will use the goods or services subsequent to their registration as a VAT vendor, may make a deduction. It is calculated as [15/115 x lesser of cost or open market value x % of taxable use] in the tax period in which the taxable application occurs. When a vendor is deregistered, VAT is payable on all assets of the business on the date of cancellation of registration. VAT incurred after deregistration cannot be recovered as input tax. |
International trade |
Imports Goods VAT is payable on the importation of goods, except where a specific exemption applies. Where goods are imported from a Southern African Customs Union (SACU) country, namely Botswana, Lesotho, Namibia or eSwatini, the VAT payable on importation is calculated as 15% of the customs value of the goods. Where goods are imported from outside the SACU region, the VAT payable on importation is calculated as [customs value of goods + 10% thereof + customs and excise duties] x 15%. Regular importers may apply to SARS for access to a VAT deferment account, which allows for a credit facility for the customs duty and VAT payable on the importation of goods. Services A reverse-charge rule applies when a non-resident (being a non-vendor) provides recipients in South Africa with services which would be neither exempt nor zero-rated if made by a VAT vendor in South Africa to the extent that the services are acquired for purposes other than making taxable supplies. If the South African recipient is a VAT vendor, it must account for the VAT on its normal VAT return, otherwise VAT must be accounted for by way of a separate declaration and payment must be made to SARS. VAT on imported services is not payable if the value in respect of the supply does not exceed ZAR100 per invoice. |
Exports Goods Where the supplying vendor sells and consigns or delivers movable goods to a customer at an address outside South Africa, the export is regarded as a ‘direct export’. The vendor may zero-rate the sale if all documentary and procedural requirements are met. Where the recipient from outside South Africa removes or arranges for the removal of goods purchased in South Africa, the export is regarded as an ‘indirect export’. The supplier must generally charge VAT at 15% but may elect (subject to certain requirements) to zero-rate the supply where the supplier accepts the responsibility to ensure that the goods are delivered to a designated commercial port from where they will be exported by the purchaser. If the supplier levies VAT at 15% on these exports, the foreign purchaser may be entitled to claim a VAT refund. Services Services physically rendered outside South Africa are zero-rated. Services supplied to a non-resident are zero-rated, except where the services are:
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Refunds to foreigners Where foreigners purchase goods in South Africa, VAT will (generally) be charged at 15%. If all requirements are met, a qualifying purchaser (i.e. a non-South African resident, tourist, foreign enterprise or foreign diplomat) may claim a refund from the VAT Refund Administrator (VRA). The purchaser must remove the goods from South Africa (through a designated commercial port) within three months. The refund request must be received by SARS within three months after the date of export. |
Place, time and value of supplies |
Place of supply In line with the destination-based principle, the VAT Act aims to tax only consumption within South Africa by allowing zero-rating for exports of goods and services rendered to non-residents. As the VAT Act contains limited place-of-supply rules, uncertainties and disputes have arisen as to when foreign enterprises making supplies in South Africa, for example by way of local agents, must be registered as vendors in South Africa. Provisions have been introduced that foreign suppliers of electronic services are required to register if they supply electronic services to any person resident in South Africa. The definition of an ‘electronic service’ has been revised with the issue of a new Regulation (Regulation No.429 published in Government Gazette No. 42316 dated 18 March 2019) effective 1 April 2019, which has widened the scope of electronic services. ‘Electronic services’ is defined as any services supplied by means of an electronic agent, electronic communication or the internet for any consideration, with the exception of certain educational services, telecommunications and specific services supplied between companies in the same group of companies. |
Time of supply The time of a supply generally determines the tax period in which output tax must be accounted for and input tax may be claimed, and the vendor’s VAT accounting basis (invoice basis or payments basis) may also affect the timing of accounting for VAT. The general rule is that a supply takes place when an invoice is issued or any payment of consideration (excluding a deposit) is received, whichever is earlier. Various special time-of-supply rules apply, for example:
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Value of supply The general rule is that the value of a supply is the consideration (price) paid for the supply. As all prices must include VAT, ‘consideration’ is a VAT-inclusive concept. Consideration = Value + 15% VAT VAT = Consideration x 15/115 Various special rules apply, for example:
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VAT compliance |
Accounting basis and tax period Tax periods are periods of one, two, six or twelve months, depending on the vendor’s circumstances:
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Returns and payment of VAT VAT returns must be filed by the 25th day after the end of the tax period. The return may be filed electronically, in which case the time limit for filing the return is the last business day of the month. VAT payments can be made by way of the SARS e-filing payment facility, at a branch of an approved bank (but not at SARS offices), and by way of electronic funds transfer (EFT). VAT payments must be made to SARS by the 25th day after the end of the tax period (or the last preceding business day). When using the e-filing and e-payment options, payment must be made by the last business day of the month. |
Interest and penalties Interest and penalties are levied in the case of the following:
SARS may waive interest and penalties in the following circumstances:
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Refunds If a refund due to a vendor is not made within 21 business days of the return being received, interest is payable by SARS provided that the return was completed correctly and SARS was not prevented from auditing the refund claim. |
Objections and appeals A person who is aggrieved with an assessment or certain decisions may lodge an objection in the prescribed form within 30 business days. If the person is dissatisfied with SARS’ decision, an appeal may be lodged within 30 business days. Depending on the specific circumstances, an appeal may be dealt with by the following:
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Time limits The maximum period for the recovery of VAT by SARS is five years. This limitation does not apply where the VAT has already been assessed during the five-year period; the failure to pay VAT was intentional; the responsible person did not act in good faith; and any assumption as to VAT liability was not based on reasonable grounds but was due to negligence. Input tax must generally be deducted within five years of the time when the input tax was first claimable. However, if the non-deduction of input tax was in line with the practice generally prevailing, the input tax must be claimed within six months. |
VAT records |
Tax invoices A full tax invoice must be issued within 21 days of the date of a taxable supply if the consideration for the taxable supply exceeds ZAR5,000. The tax invoice must be in South African rand and contain the following information:
If the consideration for the taxable supply does not exceed ZAR5,000, the supplying vendor may issue an abridged tax invoice instead of the full tax invoice. The abridged tax invoice must contain all the information required for a full tax invoice except the name, address and VAT registration number of the recipient, and the quantity or volume of the goods or services. A foreign language may not be used on invoices. Invoicing in a foreign currency is allowed if it is a zero-rated tax invoice. For standard-rated tax invoices, the conversion to South African rand based on prescribed exchange rates must be reflected on the tax invoice. The Commissioner has issued a regulation on the requirements for tax invoices for electronic services, which must include the following information:
Electronic invoicing is generally accepted provided the above requirements are satisfied. Documents kept electronically should be readily accessible when requested by SARS and should be stored in a format which allows SARS to read and correctly analyse the data. The format used for storage must preserve the integrity of the data. Government Notice 787 issued in Government Gazette 35733 sets out the relevant requirements for electronic document retention. Further, these records must be maintained at a place physically located in South Africa (i.e. the computer servers must be in South Africa), unless a senior SARS official grants the person authority to keep the records at a location outside South Africa and subject to various requirements being met. |
Credit notes and debit notes Credit and debit notes are issued when the initial consideration for the taxable supply must be adjusted. Credit notes and debit notes must contain the following information:
A credit note is not required where the terms of a prompt payment discount are clearly reflected on the face of the tax invoice. A supplier must increase its output tax for the period in which the debit note was issued, and the recipient (if a registered vendor) may increase its input tax to reflect the debit note. Where a credit note was issued, the supplier has an option to either decrease their output tax or increase its input tax. The opposite applies to the recipient (if registered as a vendor). The Commissioner has issued a regulation on the requirements for credit or debit notes for electronic services, which must include the following information:
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Additional export documentation Specific documentary requirements have been prescribed by SARS for substantiating the zero-rating of an export, for example:
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Record-keeping Records must be kept for a period of five years. SARS can perform an unannounced inspection to ensure that records are retained. Records must be kept for inspection in South Africa (unless approval has been granted by SARS for the records to be kept outside South Africa). The records must be kept or retained:
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Specific VAT rules |
Bad debts A vendor may claim a deduction if a bad debt has been written off for accounting purposes. If the bad debt is subsequently recovered, output tax must be accounted for. Bad debt relief cannot be claimed when a vendor transfers accounts receivable on a non-recourse basis. If transferred on a recourse basis, a deduction can be claimed only when the debt is transferred back to the vendor in respect of any part of the debt that was subsequently written off as irrecoverable. If a vendor who is registered on the invoice basis claims an input tax deduction and fails to pay the invoice within 12 months, it must account for output tax on the outstanding invoice amount (exceptions apply). When the vendor subsequently pays any amount of the invoice value, an input tax deduction can be claimed. |
Land and buildings The sale of land and buildings by a vendor during the ordinary course of its business is subject to VAT, in which case no transfer duty is payable. The sale of fixed property by a non-vendor is subject to transfer duty only (unless an exemption applies). A vendor may claim an input tax deduction on the acquisition of second-hand fixed property under a non-taxable supply to the extent that payment has been made and transfer of the property was effected by registration in a deeds registry in the name of the vendor making the input tax deduction. |
Accommodation The letting of a dwelling to be used as a residence of a natural person is exempt from VAT. The supply of short-term accommodation, for example holiday accommodation in hotels and guesthouses, is subject to VAT if the supplier is registered as a VAT vendor in respect of this activity. A person who provides such accommodation qualifies for VAT registration only if they have made (or are expected to make) taxable supplies of such accommodation of more than ZAR120,000 per annum. If such accommodation is provided for an uninterrupted period exceeding 28 days, VAT is charged on only 60% of the charge. |
Leasing If goods are supplied under an instalment credit agreement, the supplier must account for output tax on the total cash value excluding any finance charges when the goods are delivered or the first payment is made, whichever time is the earliest. If goods are supplied under a rental agreement, output tax is payable on the full amount of each periodic payment. While VAT is also levied on any finance charges included in the rental, VAT is not payable upfront but only when the instalments are paid. |
Promotional gifts Where no consideration is received for promotional gifts distributed by a vendor, no output tax will be payable. A vendor who acquires promotional gifts for purposes of distribution in the course of making taxable supplies (diaries, pens, clothing or product samples, for example) may deduct input tax in respect thereof, unless the input tax is specifically denied, that is where the gift constitutes entertainment (e.g. wine or chocolates). |
Secondhand goods The supply of second-hand goods by a vendor is subject to VAT. A vendor who has purchased second-hand goods under a non-taxable supply may, subject to certain conditions, deduct ‘notional input tax’ that is calculated as the tax fraction (15/115) of the lesser of the open-market value or the consideration paid. Where the second-hand goods are fixed property, the notional input tax may be deducted to the extent that payment has been made and the transfer of the property was effected by registration in a deeds registry in the name of the vendor making the input tax deduction. |
Tourism industry The transport of fare-paying passengers by road or railway is exempt, excluding transport by way of a funicular railway or a game-viewing vehicle. The transport of passengers from South Africa to a destination outside South Africa (and vice versa) is zero-rated. The zero-rate also applies to the local leg of an international flight, for example a connecting flight between Cape Town and Johannesburg en route to New York. The supply of accommodation and meals (e.g. in hotels) is subject to VAT at the standard rate. Travel agency fees charged for arranging a tour package are zero-rated if the tourist is outside South Africa when the tour package is arranged, and standard-rated if the tourist is in South Africa when the tour package is arranged. Tour operators must keep accurate records to establish which part of the package relates to exempt supplies (e.g. travel in South Africa), zero-rated supplies (e.g. travel to a place outside South Africa) and taxable supplies (e.g. hotel accommodation). Furthermore, a recent court case judgement reiterated the principle that the full charge of tour packages arranged for foreign tour operators may also be considered standard-rated supplies as the tourists will be in South Africa when the services (e.g. accommodation, food and beverages etc) are rendered, irrespective of whether the foreigner was outside South Africa when the tour was arranged or purchased. Therefore, the VAT rate applicable will be dependent on the facts and circumstances and where the services will be rendered. |
Transfer of a business The sale of an enterprise (or part thereof) to a registered vendor is zero-rated if the parties have agreed in writing that:
If the purchaser of an enterprise that was sold as a going concern at 0% acquires the enterprise partly for non-taxable purposes, output tax must be paid to the extent of the intended non-taxable application (if more than 5% of total application). |
Warranty repairs The supply of services to a warrantor for consideration in respect of goods under warranty is zero-rated if the warrantor is a non-resident and non-vendor; the warrantor is outside South Africa at the time the services are rendered; and VAT was paid on the importation of the goods under warranty. |
Reverse charge on valuable metals Effective from 1 July 2022 National Treasury released Regulations imposing a domestic reverse charge (DRC) on the supply of valuable metals. The main purpose of the DRC is to curb VAT refund fraud that had been prevalent in the second hand gold market. Valuable metals is defined as any goods containing gold in the form of jewellery, bars, blank coins, ingots, buttons, wire, plate, granules, in a solution, residue or similar forms, including any ancillary goods or services. The DRC applies to standard-rated sales of valuable metal between registered vendors. Under the Regulations, the purchaser (i.e. recipient) and not the seller will be required to declare the VAT charged on the sale of valuable metal to SARS in its VAT 201 return. The recipient will be entitled to an input tax deduction only if the VAT amount levied by the seller has been declared and paid in the recipient’s VAT 201 return. The seller must issue a tax invoice to the recipient within 21 days of the date of the supply with additional information such as the supply is subject to the DRC and a statement that the amount of VAT charged must be accounted for and paid (on behalf of the seller) by the recipient. However, where approval is granted, the recipient may issue the tax invoice (i.e. recipient created tax invoice). The recipient must notify the supplying vendor in writing by means of a statement within 21 days after the end of the calendar month during which a tax invoice was issued to the recipient vendor. The statement must contain, amongst others, the following particulars:
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Other indirect taxes |
Customs duty Customs duty is payable on the importation of goods into South Africa at the time of entry for home consumption. The rate of duty is often determined as a percentage of the value of the goods (ad valorem) at a rate ranging from 0% to as high as 60%. Additional ad valorem customs duties are levied on a range of luxury items. South Africa is a member of the Southern African Customs Union (SACU) which includes, as other members, Botswana, Namibia, Lesotho and eSwatini (Swaziland). Import duties are not levied on movements of goods between these countries. Depending on the origin of the imported goods concerned, preferential tariff treatment may be applied. Furthermore, a number of duty relief schemes are available depending on the type of customs-related activities in which an importer or exporter engages. |
Excise duty Excise duty is payable on certain locally manufactured goods, and non-essential products consumed locally with a corresponding customs duty (at the same rate of duty) on imported goods of the same class or kind, for example fuel products, tobacco products, malt beer, traditional African beer, spirits (liquor) products, wine, other fermented beverages, ad valorem products and environmental levy goods. The rate of excise duty is levied on the specific quantity or volume consumed. Ad valorem excise duty is payable on other locally manufactured non-essential or luxury products with a corresponding ad valorem customs duty (at the same rate of duty) on imported goods of the same class or kind. These include motor vehicles, cell phones, cosmetics and television receivers. The excise duty is assessed on the value of the products consumed locally. Government has proposed to apply a flat excise duty to both electronic nicotine delivery systems and electronic non-nicotine delivery systems. |
Environmental levies An environmental levy is charged on certain locally manufactured and imported plastic carrier bags and flat bags (e.g. grocery bags), electricity generated at an electricity generation plant in South Africa, electrical filament lamps and carbon dioxide (CO2) vehicle emissions. |
Carbon tax The Carbon Tax Act No. 15 of 2019 became effective on 1 June 2019. Carbon Tax, at a rate of R159/ per tonne of carbon dioxide equivalent (tCO2e) for the 2023 tax period (1 January 2023 until 31 December 2023), must be levied in respect of the sum of the scope 1, direct greenhouse gas (GHG) emissions of a taxpayer. The GHG emissions resulting from fuel combustion, industrial processes and product use as well as fugitive emissions expressed as a carbon dioxide equivalent will be taxable. A person conducting an activity in South Africa resulting in GHG emissions equal to and/or above the prescribed thresholds, as provided for in Schedule 2 of the Carbon Tax Act, will be subject to carbon tax. Taxpayers can leverage tax-free allowances that will reduce their tax obligation. These allowances will be administered as rebates, in terms of Schedule 6 of the Customs and Excise Act. The allowances are as follows:
Multiple allowances can be granted to the same taxpayer. However, the total may not exceed 95%. The abovementioned carbon tax allowances will remain unchanged until the end of Phase One of the carbon tax regime (Phase One runs until 31 December 2025). Phase 2 of the carbon tax regime is set to commence on 1 January 2026, whereinafter, it is anticipated that the above allowances will be reduced, and the carbon tax rate significantly increased, to bring the rate in line with global carbon prices. The Taxation Laws Amendment Act, 2022 (TLAA), has provided the carbon tax rate trajectory for the period 2023 – 2030, the rate increases per the TLAA will be as follows:
‘Persons’ and/or ‘Data Providers’ operating in South Africa, who conduct activities resulting in GHG emissions equal to or above the prescribed thresholds, as provided for in Annexure 1 of the National Greenhouse Gas Emission Reporting Regulations (NGER Regulations) as well as Schedule 2 of the Carbon Tax Act, will be considered as taxpayers under the Carbon Tax Act and as a data provider under the NGER Regulations. Persons and/or data providers will be required to submit carbon budgets and adhere to the provisions of the mandatory carbon budgeting system set out in the Climate Change Bill. In terms of the provisions of the Climate Change Bill, persons who exceed their assigned carbon budget will be penalised at a rate of R640/tCO2e, for every tonne, exceeded beyond an assigned carbon budget. The Climate Change Bill is yet to be promulgated which creates a degree of uncertainty. It is, however, recommended that taxpayers opt to adhere to the proposed incoming provisions. To comply with the Carbon Tax Act and the NGER Regulations, taxpayers/ data providers must ensure that GHG emissions data are reported by 31 March to the Department of Forestry Fisheries and the Environment and carbon tax returns are submitted to the South African Revenue Service by the penultimate working day of July for the preceding year. |
Health Promotion Levy on sugary beverages (sugar tax) From 1 April 2018, a levy on sugary beverages was introduced to decrease diabetes, obesity and other related diseases and is known as the Health Promotion Levy (HPL) and commonly referred to as sugar tax. The rate is 2.1 cents per gram of sugar content that exceeds 4.0 grams per 100 ml. The first 4.0 grams per 100 ml are exempt from the HPL. For the purposes of HPL, sugar content means both intrinsic and added sugar and other sweetening matter. This levy is applicable to both identified imported products and locally manufactured products. HPL on imported products is levied when it is cleared for home consumption and HPL on locally manufactured products is payable by the South African manufacturers. HPL is not payable on sugar beverages that are exported or used in the process of manufacture of other dutiable goods. |
Transfer duty Transfer duty is payable on the transfer of immovable property unless the supply of the property is subject to VAT. The person acquiring the property must pay the transfer duty. The following rates apply with effect from 1 March 2021:
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Securities transfer tax Securities transfer tax is charged on the transfer of listed and unlisted securities at the rate of 0.25% of the taxable amount (the purchase consideration unless a special rule applies) in respect of any transfer of a security. |
Skills development levy A skills development levy is payable by employers who have an annual payroll in excess of ZAR500,000 at a rate of 1% of the total remuneration paid to employees. This is a compulsory levy scheme for the funding of education and training. |
Turnover tax Certain persons whose turnover does not exceed ZAR 1m during the year of assessment, and who do not render professional services, may apply to be registered for the turnover tax for microbusinesses. This is a simplified tax system which serves as an alternative to VAT, Income Tax, Provisional Tax, Capital Gains Tax and Dividends Tax for micro businesses. |
General fuel levy and Road Accident Fund levy The general fuel levy and the Road Accident Fund levy are payable on the sale of petrol and diesel. No VAT is payable on fuel levy goods. |
Air passenger departure tax Passengers departing to Botswana, Lesotho, Namibia and eSwatini pay air passenger departure tax of ZAR100 per passenger, while passengers departing to other international destinations pay ZAR190 per passenger. |
