VAT is a tax added to the price of most goods and services sold by a business. The current rate of VAT is 15%.
If you are VAT‑registered:
- You charge VAT on sales.
- You can claim back VAT on certain business expenses.
Who should register for VAT?
- It is compulsory to register for VAT if your business taxable sales exceed R2.3 million in any uninterrupted prior 12‑month period.
- You may voluntarily register for VAT if your taxable sales are more than R120 000 in a prior 12‑month period.
- If you sell goods or provide services that are identified as taxable (either standard‑rated or zero‑rated).
- If you are continuously and regularly running an ongoing business which is not a private or once-off activity and earning income from it.
Registering for VAT can improve cash flow as you can claim back VAT on certain business expenses, enhance business credibility, and support long‑term growth.
Find out more here
