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Taxes

South Africa — Tax: Vat

South African VAT is 15% on supplies by registered vendors, and vendors with taxable supplies above R2.3 million a year must register.

VerifiedGovernment / official sourceSARS — Value-Added Tax and Budget 2026Last reviewed: 2026-10-23

Why this matters

Relocating individuals should care about VAT in South Africa as it can impact their tax liability and overall financial situation.

Key facts

  • The standard VAT rate is 15% on supplies of goods and services by registered vendors.
  • Vendors with taxable supplies above R2.3 million a year must register.
  • The Budget 2026 FAQ also raises the annual capital gains exclusion for individuals to R50,000.
  • Check SARS for zero-rated and exempt supplies.

Steps

  1. Registering for VAT — Businesses with an annual turnover exceeding ZAR 1 million must register for VAT. The registration process typically takes 2-4 weeks.

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