What is VAT (Value-Added Tax)?
A 15% tax on most goods and services that registered vendors charge customers and pay over to SARS, after deducting VAT on their own costs.
VAT is charged at the standard rate of 15% on most supplies, with some zero-rated or exempt. A registered vendor charges VAT on sales (output VAT), deducts VAT paid on business costs (input VAT) and pays the difference to SARS, or claims a refund.
From 1 April 2026 you must register once taxable supplies exceed, or are expected to exceed, R2.3 million in 12 months (up from R1 million). You may register voluntarily once they exceed R120,000 (up from R50,000). SARS notes these changes were announced in Budget 2026 and are being applied from that date.
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VAT registration