South Africa VAT

VAT was born as a tax for business enterprise in South Africa in 1991. All taxable supplies of goods or services are liable to VAT – with some exemptions

Should you register for South African VAT

For foreign companies making taxable supplies in South Africa, there may be a statutory obligation to register for VAT.

Typical situations requiring a South Africa VAT registration include:

  • Where goods are delivered within South Africa;
  • If the foreign trader imports, installs or assembles goods in South Africa;
  • Export of goods from South Africa;
  • Supply of services where the place of supply is South Africa
  • Organising live events and conferences

South Africa VAT registration threshold

There is an annual VAT registration threshold of ZAR 1,000,000 per annum. It is not compulsory to register if the annual sales turnover is below this amount.

South African Thresholds

VAT Registration threshhold ZAR 1,000,000
Annual EU distance selling threshold

South African Fiscal representative

A foreign company may register for VAT without the requirement to form a local company; however they must appoint a South African VAT fiscal representative. The representative and company are jointly liable for the reporting and payment of VAT to the South African authorities.

In addition to appointing a Fiscal Rep, the company would require a South African bank account and also a South African registered address.

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