What is the current VAT rate in South Africa?

# What is the current VAT rate in South Africa? The current VAT rate in South Africa is **15%**. This rate applies to the standard supply of goods and services by registered VAT vendors. ## Recent VAT Rate Changes The VAT rate was originally scheduled to increase to **15.5%** on **1 May 2025**, but this increase was officially cancelled by the National Treasury in April 2025. The VAT rate will remain at **15%** indefinitely. ## VAT Rate Application - **Standard rate**: 15% on most goods and services - **Zero-rated items**: 0% on specific goods like basic foodstuffs and exports - **Exempt supplies**: No VAT charged on items like educational services and residential rent ## Zero-Rated vs Exempt Supplies **Zero-rated supplies** (0% VAT) include: - Basic food items (bread, milk, vegetables, etc.) - Exports of goods and services - International transport services **Exempt supplies** (no VAT) include: - Educational services by approved institutions - Financial services - Residential property rentals ## VAT Registration Requirements Businesses must register for VAT when their taxable supplies exceed **R1,000,000** in any 12-month period. Voluntary registration is available for businesses with taxable supplies exceeding **R50,000** annually. ## Key VAT Deadlines VAT returns and payments are due by the **25th of the month** following the end of each VAT period. Most businesses file monthly, but smaller businesses may qualify for two-monthly periods. Managing VAT compliance deadlines is crucial for South African accounting practices. WeekdayApp automatically tracks SARS VAT deadlines and generates compliance reminders, helping practices avoid late filing penalties, starting at R199/user/month.