VAT at 15% in South Africa
The standard VAT rate, the difference between zero-rated and exempt supplies, and how each appears on a tax invoice.
The standard VAT rate in South Africa is 15%. It has applied since 1 April 2018, when it rose from 14%. A proposed increase in 2025 was withdrawn, so 15% is still the rate. VAT vendors charge 15% on standard-rated supplies. Some supplies are zero-rated, which means VAT is charged at 0% and the supplier can still claim input tax. These include exports of goods and a list of basic foodstuffs. Other supplies are exempt, such as most financial services and residential rental. No VAT is charged on those and the supplier cannot claim related input tax. On your invoice, show the rate that applies to each line. 4invoices lets you set the tax rate per line. It does not choose the rate for you and it does not file returns.
- Standard rate: 15% since 1 April 2018.
- Zero-rated supplies: 0% VAT, input tax can be claimed (exports, certain basic foodstuffs).
- Exempt supplies: no VAT, no input tax claim (such as most financial services and residential rent).
- Show the right rate on each invoice line.
How it works
Confirm you are a VAT vendor. Only registered vendors charge VAT. See the registration page for thresholds.
Classify each product or service. Decide whether it is standard-rated, zero-rated or exempt. If you are unsure, ask your accountant or check the SARS guide.
Set the rate on each invoice line. Use 15% for standard-rated, 0% for zero-rated, and leave VAT off exempt lines. In 4invoices you enter the tax rate yourself on each line.
Show VAT clearly. The invoice shows the value of the supply, the VAT charged and the total.
Keep your records. Keep invoices you issue and receive for at least five years, and use them when you complete your VAT201 return.
Legal references
- Value-Added Tax Act 89 of 1991, section 7 - imposition of VAT at the standard rate.
- Value-Added Tax Act 89 of 1991, section 11 - zero-rated supplies, including exports.
- Value-Added Tax Act 89 of 1991, section 12 - exempt supplies.
Frequently asked questions
What is the current VAT rate in South Africa?
15%. It was raised from 14% on 1 April 2018. A proposed increase announced in 2025 was withdrawn.
What is the difference between zero-rated and exempt?
Zero-rated supplies are taxed at 0%, and the supplier can claim input tax on related purchases. Exempt supplies have no VAT and the supplier cannot claim input tax on related purchases.
Which foodstuffs are zero-rated?
The VAT Act lists them. The list includes items such as brown bread, maize meal, dried beans, rice, fresh fruit and vegetables, milk and eggs. Check the current list in the Act or the SARS VAT 404 guide before you rely on it.
Does 4invoices pick the VAT rate for me?
No. You enter the tax rate on each invoice line yourself. 4invoices does not classify your products, does not connect to SARS and does not file VAT returns.