# south-africa-vat ## South Africa VAT (VAT201) Skill v2.1 ## Verified rates & thresholds (accountant-reviewed) Reviewed against the cited tax authorities by **Werner Britz** on 2026-06-12. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified `skill_facts` — edit the facts, not the prose. ### VAT (south-africa-vat) - **Country** — South Africa (Republic of South Africa) - **Tax** — VAT (Value-Added Tax) - **Currency** — ZAR (South African Rand / R) - **Tax year** — VAT has tax periods, not tax years, and there is no QUARTERLY category in SA. Categories under s 27: A (bimonthly), B (monthly, >R30m), C (six-monthly farming below R1.5m), D (annual connected-party farming/rental), E (annual rental between certain connected persons), F (four-monthly micro businesses on turnover tax). _(VAT Act s 27)_ - **Standard rate** — 15% _(VAT Act s 7(1)(a); SARS media release 25 April 2025)_ - **Zero rate list** — Two problems: (1) "Residential accommodation on long-term letting by developers" is EXEMPT under s 12(c), not zero-rated. (2) "Certain financial instruments" is misleading - financial instruments are generally exempt under s 2/s 12; the only zero-rated financial supply is gold supplied to the SARB or a bank under s 11(1)(k). Add: supply of an enterprise as a going concern (s 11(1)(e)); illuminating paraffin (s 11(1)(h)); certain government grants; agricultural inputs; deemed exports of second-hand goods. _(VAT Act s 11 and s 12(c))_ - **Exempt list** — "Lending" alone is too narrow - the s 2 definition covers exchange of currency, dealing in securities, life insurance/reinsurance, retirement annuity contributions, etc. SHORT-TERM insurance is standard-rated (not exempt). Add to list: educational services by recognised institutions; childcare and creche; donated goods/services by associations not for gain. _(VAT Act s 12 and s 2)_ - **Registration threshold** — R2,300,000 from 1 April 2026 (compulsory). R120,000 (voluntary). _(VAT Act s 23; SARS Register for VAT page)_ - **Tax authority** — SARS (South African Revenue Service) - **Return form** — VAT201 (eFiling) - **Filing portal** — SARS eFiling (https://efiling.sars.gov.za) - **Filing frequencies** — No quarterly category exists. See "Tax year" row above for the full list. _(VAT Act s 27)_ - **Filing deadline** — Last business day of month following tax period (eFiling); 25th for paper (not recommended) _(VAT Act s 28)_ - **Tax invoice** — Add the required content (see Section 5.4 below): full invoice over R5,000 incl VAT, abridged R50-R5,000, no invoice required for R50 or less but a till slip is needed. _(VAT Act s 16(2) and s 20)_ - **VAT number** — Format: 4xxxxxxxx (10 digits starting with 4) _(SARS Register for VAT page)_ After validation, update "Validated by" status with reviewer name and date. - **Field 1** — Add: "excluding capital goods" - capital goods go to Field 1A. _(SARS VAT201 completion guide)_ - **Field 1A** — Field 1A is the VAT-INCLUSIVE VALUE of standard-rated CAPITAL goods supplied. Output VAT on Field 1 is Field 4. Output VAT on Field 1A is Field 4A. _(SARS VAT201 completion guide)_ - **Field 2** — Split: Field 2 (zero-rated excl exports), Field 2A (exported goods). _(SARS VAT201 completion guide)_ - **Field 3** — Exempt supplies _(SARS VAT201 completion guide)_ - **Field 4** — Field 4 is output VAT on Field 1 (Field 1 x 15/115). Not a total of supplies. _(SARS VAT201 completion guide)_ - **Field 5** — Field 5 is value of commercial accommodation supplied for more than 28 days. Total output is Field 13. _(SARS VAT201 completion guide)_ - **Field 10** — Field 10 is consideration on which a notional input was previously deducted, where goods are subsequently exported or applied for non-taxable use - this is an OUTPUT adjustment. _(SARS VAT201 completion guide)_ - **Field 11** — Field 11 = Field 10 x 15/115. Field 12 is other and imported services (output). _(SARS VAT201 completion guide)_ - **Field 12** — Field 12 is other and imported services (output side, e.g. imported services self-assessed output). Total input is Field 19. _(SARS VAT201 completion guide)_ - **Field 13** — Field 13 is TOTAL OUTPUT TAX (sum of Fields 4 + 4A + 9 + 11 + 12). Net VAT is Field 20. _(SARS VAT201 completion guide)_ - **Field 14** — Field 14 is input VAT on CAPITAL goods (with Field 14A for imported capital). Refund/payable is Field 20. _(SARS VAT201 completion guide)_ - **Field 15** — Field 15 is input VAT on OTHER goods/services (with Field 15A for imported). Refund/payable is Field 20. _(SARS VAT201 completion guide)_ - **MISSING: Fields 16, 17, 18, 19, 20** — Field 16 (change in use, input adjustment); Field 17 (bad debts s 22 relief); Field 18 (other inputs); Field 19 (total input tax = sum of 14+14A+15+15A+16+17+18); Field 20 (net VAT payable/refundable). _(SARS VAT201 completion guide)_ - **Unknown rate on a sale** — 15% standard - **Unknown counterparty country** — Domestic South Africa - **Unknown export qualification** — 15% until export evidence confirmed _(Export Regulation GN R316)_ - **Unknown business-use % (vehicle, entertainment)** — For VEHICLES that are "motor cars" the input is FULLY BLOCKED regardless of business use (s 17(2)(c)). For non-motor-car vehicles and other mixed-use items, the default of 0% is conservative. Reword to flag motor car block. _(VAT Act s 17(2)(c))_ - **Unknown whether tax invoice compliant** — No input tax _(VAT Act s 16(2))_ - **Unknown whether zero-rated or exempt** — Treat as taxable 15% - **Unknown B2B vs B2C for cross-border** — 15% if consumed in South Africa Reasonable threshold for a high-value review flag. Reasonable. Reasonable. Reasonable. Reasonable. - **Minimum viable** — Bank statement for the tax period in CSV, PDF, or pasted text. VAT registration number (starting with 4) - **Recommended** — Tax invoices are required for input claims above R50, not just above R5,000. Above R5,000 a FULL tax invoice is required; between R50 and R5,000 an abridged invoice is acceptable. Reference to "Field 14" for prior period excess credit is wrong - prior period credit is not a VAT201 field; it carries forward via SARS's vendor statement. _(VAT Act s 16(2) and s 20)_ - **Ideal** — Complete creditors/debtors ledger, import VAT certificates (SAD500), asset register, prior VAT201 return - **R-ZA-1: Non-VAT-registered vendor** — Only registered vendors can charge VAT and claim input tax _(VAT Act s 7 and s 23)_ - **R-ZA-2: Partial exemption / apportionment** — Concept correct. Note: standard turnover-based method (STM) per BGR 16 is the default; alternative methods need a ruling. De minimis rule under proviso to s 17(1): if exempt is less than 5% of total, claim full input. Most small businesses can avoid apportionment with planning. _(VAT Act s 17(1); BGR 16)_ - **R-ZA-3: Capital goods scheme (Section 18A)** — Section 18A in the skill seems to refer to the change-in-use adjustment under s 18 generally. There is no "capital goods scheme" of the EU type in SA. The s 18(1) adjustment applies on change of use to non-taxable. s 18(4) applies to a change from non-taxable to taxable. s 16(3)(h) gives a deemed input claim on a change of use. The skill should reference s 18 and s 16(3)(h) rather than "s 18A". _(VAT Act s 18)_ - **R-ZA-4: Financial services (Section 2)** — Financial services have complex VAT treatment. Banks, insurers, and financial institutions require specialist handling. _(VAT Act s 2 and s 12(a))_ - **R-ZA-5: Property transactions** — Correct as a refusal but note: SA does not have an "option to tax" election for commercial property in the UK sense. Sale of commercial property by a vendor is standard-rated by default; going-concern zero-rating may apply (s 11(1)(e)). Transfer duty interaction is critical. _(VAT Act s 11(1)(e); Transfer Duty Act)_ - **ABSA BANK, ABSA GROUP** — Bank service fees are STANDARD-RATED at 15%, input claimable. See summary critical finding #3. ABSA issues a monthly VAT tax invoice downloadable from online banking. _(VAT Act s 2(1) proviso; SARS VAT News 7)_ - **STANDARD BANK, STANBIC** — Standard-rated, input claimable. Same correction. - **FIRSTRAND, FNB, FIRST NATIONAL BANK** — Standard-rated, input claimable. FNB issues a monthly tax invoice via online banking. - **NEDBANK** — Standard-rated, input claimable. - **CAPITEC BANK** — Standard-rated, input claimable. - **INVESTEC** — Standard-rated, input claimable. - **AFRICAN BANK** — Standard-rated, input claimable. African Bank's mix of taxable fees and exempt credit provision was the subject of the 2025 SCA judgment on apportionment. _(CSARS v African Bank Ltd [2025] ZASCA 101)_ - **BANK CHARGES, SERVICE FEE, INTEREST** — Bank charges and service fees: STANDARD-RATED. Interest: exempt. The two should be separated. _(VAT Act s 2(1) proviso)_ - **SARS, SOUTH AFRICAN REVENUE SERVICE** — EXCLUDE - Tax payment - **UIF, UNEMPLOYMENT INSURANCE FUND** — EXCLUDE - Statutory contribution - **WORKMEN'S COMP, COIDA** — EXCLUDE - Compensation fund - **MUNICIPALITY, LOCAL AUTHORITY (rates)** — Property RATES are out of scope. But same municipality's ELECTRICITY, WATER, REFUSE REMOVAL charges ARE standard-rated and input claimable on the same bill. Most municipal accounts mix rates (no VAT) with electricity/water (15% VAT) - must split on the line item, not exclude the whole supplier. _(VAT Act s 7)_ - **ROAD ACCIDENT FUND, RAF** — EXCLUDE - Statutory levy - **ESKOM** — Input 15% - **CITY POWER (Johannesburg)** — Input 15% - **CAPE TOWN ELECTRICITY** — Input 15% - **RAND WATER, RAND WATER BOARD** — Input 15% - **CITY OF CAPE TOWN WATER** — Input 15% - **VODACOM** — Input 15% - **MTN SOUTH AFRICA** — Input 15% - **CELL C** — Input 15% - **TELKOM SA** — Input 15% - **RAIN NETWORK** — Input 15% - **AFRIHOST** — Input 15% - **SOUTH AFRICAN AIRWAYS, SAA** — Route distinction (international 0% / domestic 15%) is correct as a high-level summary, but ticket components are NOT uniformly 15% (domestic) or 0% (international). Split required: Airline ticket must be SPLIT - not all components are VATable. Typical breakdown on a domestic SA ticket: (a) Base air fare: 15% VAT (claimable). (b) Fuel surcharge: 15% VAT (claimable, airline cost). (c) ACSA Passenger Service Charge (PSC): 15% VAT INCLUSIVE (per ACSA published tariffs from 1 April 2019; claimable). (d) SACAA Passenger Safety Charge: NOT VATable (statutory levy, pass-through). (e) ATNS Air Traffic and Navigation Services charge: NOT VATable to the passenger (regulated pass-through). (f) Insurance surcharge (if charged by airline): 15% VAT (claimable). (g) Air Passenger Tax (only on flights to international destinations - R100 SACU / R190 other): NOT VATable (tax under s 47B Customs and Excise Act, imposed on the passenger, recovered by the airline). For INTERNATIONAL flights ex-SA: the airfare itself is ZERO-RATED under s 11(2)(a). Airport taxes and APT remain not-VATable. Practical: the airline e-ticket usually shows these as separate lines. Claim input only on the VAT-inclusive components (lines (a), (b), (c), and (f) for domestic; line (c) only for international, since (a) is zero-rated). The full "15% of ticket total" approach overclaims input by approximately the value of items (d), (e), and (g). Note: SAA emerged from business rescue in 2021. Mango (subsidiary) ceased operating in 2021. _(VAT Act s 11(2)(a) and s 12; Customs and Excise Act s 47B (Air Passenger Tax); ACSA Airport Tariffs schedule (effective 1 April 2019 and as amended); SACAA passenger safety charge regulations; Tax Faculty FAQ on travel agent VAT; Accounting Weekly "International Airfare and VAT Claims")_ - **FLYSAFAIR** — Cannot apply "15% on ticket total" - need to split by component. Airline ticket must be SPLIT - not all components are VATable. Typical breakdown on a domestic SA ticket: (a) Base air fare: 15% VAT (claimable). (b) Fuel surcharge: 15% VAT (claimable, airline cost). (c) ACSA Passenger Service Charge (PSC): 15% VAT INCLUSIVE (per ACSA published tariffs from 1 April 2019; claimable). (d) SACAA Passenger Safety Charge: NOT VATable (statutory levy, pass-through). (e) ATNS Air Traffic and Navigation Services charge: NOT VATable to the passenger (regulated pass-through). (f) Insurance surcharge (if charged by airline): 15% VAT (claimable). (g) Air Passenger Tax (only on flights to international destinations - R100 SACU / R190 other): NOT VATable (tax under s 47B Customs and Excise Act, imposed on the passenger, recovered by the airline). For INTERNATIONAL flights ex-SA: the airfare itself is ZERO-RATED under s 11(2)(a). Airport taxes and APT remain not-VATable. Practical: the airline e-ticket usually shows these as separate lines. Claim input only on the VAT-inclusive components (lines (a), (b), (c), and (f) for domestic; line (c) only for international, since (a) is zero-rated). The full "15% of ticket total" approach overclaims input by approximately the value of items (d), (e), and (g). _(VAT Act s 11(2)(a) and s 12; Customs and Excise Act s 47B (Air Passenger Tax); ACSA Airport Tariffs schedule (effective 1 April 2019 and as amended); SACAA passenger safety charge regulations; Tax Faculty FAQ on travel agent VAT; Accounting Weekly "International Airfare and VAT Claims")_ - **AIRLINK** — Route framing correct but not all components on a domestic ticket are 15%. Split required: same breakdown as SAA/FlySafair entries above. _(VAT Act s 11(2)(a) and s 12; Customs and Excise Act s 47B (Air Passenger Tax); ACSA Airport Tariffs schedule (effective 1 April 2019 and as amended); SACAA passenger safety charge regulations; Tax Faculty FAQ on travel agent VAT; Accounting Weekly "International Airfare and VAT Claims")_ - **KULULA.COM** — Kulula ceased operations on 5 July 2022 along with its parent Comair under business rescue. Remove from supplier list. Where the row is being used as a template for similar low-cost domestic carriers (Lift, FlySafair, Cemair): same split-by-component issue applies (same breakdown as SAA/FlySafair entries above). _(VAT Act s 11(2)(a) and s 12; Customs and Excise Act s 47B (Air Passenger Tax); ACSA Airport Tariffs schedule (effective 1 April 2019 and as amended); SACAA passenger safety charge regulations; Tax Faculty FAQ on travel agent VAT; Accounting Weekly "International Airfare and VAT Claims")_ - **UBER SOUTH AFRICA** — Uber/Bolt operate on an AGENCY model: the platform invoices the rider in the name of the driver as the driver's agent for the fare. The driver is the actual supplier of the road transport service. Under s 12(g), the fare is EXEMPT. Three separate supplies: (1) Driver->Rider fare: EXEMPT (s 12(g)); (2) Uber/Bolt->Driver service fee: STANDARD-RATED 15%, driver may claim input if registered; (3) Uber->Rider booking fee: STANDARD-RATED 15%, business rider may claim input with valid tax invoice. Uber registered as SA VAT vendor from May 2019; Bolt similarly. TAXI: generally not VAT-registered, same s 12(g) exemption applies. Practical: fare not claimable, only booking fee fragment (if separately shown) may be claimed. _(VAT Act s 12(g) and s 54 (agent and principal); Uber South Africa "Tax Information for Driver-Partners" page; SARS BGR 16 (Issue 4) on apportionment; SARS VAT Quick Reference Guide)_ - **BOLT SOUTH AFRICA** — Same agency model as Uber: platform invoices rider as driver's agent for the fare; fare EXEMPT under s 12(g); service fee/commission STANDARD-RATED 15%; booking fee STANDARD-RATED 15% and claimable with valid tax invoice. _(VAT Act s 12(g) and s 54; Uber South Africa "Tax Information for Driver-Partners" page; SARS BGR 16 (Issue 4); SARS VAT Quick Reference Guide)_ - **DHL SOUTH AFRICA** — Input 15% _(VAT Act s 11(2)(a))_ - **FEDEX SOUTH AFRICA** — Input 15% - **DAWN WING** — Input 15% - **THE COURIER GUY, TCG** — Input 15% - **ARAMEX SOUTH AFRICA** — Input 15% - **CHECKERS, SHOPRITE** — CRITICAL ENTERTAINMENT BLOCK: input tax on food and beverages purchased from a supermarket is usually BLOCKED under s 17(2)(a) regardless of underlying rate, because the supply to employees, clients, or in the office is "entertainment" as defined in s 1. Default for office groceries (tea, coffee, milk, sugar, biscuits, refreshments, staff fridge, year-end party food): NO INPUT TAX regardless of rate. Exceptions where input CAN be claimed: (1) vendor is in the business of providing entertainment (restaurant, hotel, conference venue, caterer, B&B - resale stock); (2) employee subsistence away from usual place of work; (3) employee canteen charged at/above cost (s 17(2)(a)(ii)); (4) bona fide promotional gifts subject to BGR conditions; (5) long-distance road transport operators meals for drivers. Line-item split relevant only where items are genuinely for resale. _(VAT Act s 1 ("entertainment" definition); s 17(2)(a) (input tax block); SARS BGR 16 (Issue 4); SARS IN 70 (supplies for no consideration); SARS VAT 411 Guide for Entertainment, Accommodation and Catering)_ - **PICK N PAY, PNP** — CRITICAL ENTERTAINMENT BLOCK (same as Checkers/Shoprite entry): input on office groceries blocked under s 17(2)(a); exceptions for hospitality trade, subsistence, canteen-with-charge, promotional gifts, transport operator driver meals. _(VAT Act s 1 ("entertainment" definition); s 17(2)(a) (input tax block); SARS BGR 16 (Issue 4); SARS IN 70 (supplies for no consideration); SARS VAT 411 Guide for Entertainment, Accommodation and Catering)_ - **WOOLWORTHS FOOD** — CRITICAL ENTERTAINMENT BLOCK (same as above entries): input on office groceries blocked under s 17(2)(a); same exceptions apply. _(VAT Act s 1 ("entertainment" definition); s 17(2)(a) (input tax block); SARS BGR 16 (Issue 4); SARS IN 70 (supplies for no consideration); SARS VAT 411 Guide for Entertainment, Accommodation and Catering)_ - **SPAR** — CRITICAL ENTERTAINMENT BLOCK (same as above entries): input on office groceries blocked under s 17(2)(a); same exceptions apply. _(VAT Act s 1 ("entertainment" definition); s 17(2)(a) (input tax block); SARS BGR 16 (Issue 4); SARS IN 70 (supplies for no consideration); SARS VAT 411 Guide for Entertainment, Accommodation and Catering)_ - **FOOD LOVERS MARKET** — CRITICAL ENTERTAINMENT BLOCK (same as above entries): input on office groceries blocked under s 17(2)(a); same exceptions apply. _(VAT Act s 1 ("entertainment" definition); s 17(2)(a) (input tax block); SARS BGR 16 (Issue 4); SARS IN 70 (supplies for no consideration); SARS VAT 411 Guide for Entertainment, Accommodation and Catering)_ - **CLICKS** — CLAIMABLE at 15% (business use): office cleaning supplies, toiletries, stationery, first aid supplies (mandatory under OHS Act), batteries, other general office consumables. BLOCKED under s 17(2)(a) entertainment: food/beverages for office consumption, catering for client meetings, alcohol for staff functions. NOT FOR BUSINESS (no input claim, not income tax deductible either): personal cosmetics, vitamins for personal use, hair care for personal use; if provided to staff as benefit may be fringe benefit under s 18(3). STANDARD-RATED at 15% but check business purpose: prescription medicines (NOT exempt); OTC medicines - business purchases uncommon (typically only first aid kit stock). _(VAT Act s 1 ("entertainment" definition - "food, beverages, accommodation, entertainment, amusement, recreation or hospitality"); s 17(2)(a) (entertainment input tax block); SARS BGR 16; Occupational Health and Safety Act 85 of 1993 (first aid kit requirement))_ - **DIS-CHEM** — Skill's line is wrong on two counts. (1) Prescription medicines are STANDARD-RATED at 15%, not exempt or zero-rated. (2) Single-rate "Input 15% (OTC)" too narrow. CLAIMABLE at 15%: office cleaning supplies, toiletries for office, hand sanitiser and tissues, first aid supplies, stationery, batteries. BLOCKED under s 17(2)(a): food/beverages for office consumption, catering items for client meetings. NOT FOR BUSINESS: personal cosmetics, vitamins, baby products, fragrance and beauty products. STANDARD-RATED at 15% input: prescription medicines (corrected from skill's "0% prescription exemption"). All medicines standard-rated. Correct entry: "Input 15% on medicines (prescription and OTC); input 15% on office consumables, cleaning, hygiene, and first aid; entertainment block applies to food and beverage lines; personal cosmetics not business expense." _(VAT Act s 1 ("entertainment" definition - "food, beverages, accommodation, entertainment, amusement, recreation or hospitality"); s 17(2)(a) (entertainment input tax block); SARS BGR 16; Occupational Health and Safety Act 85 of 1993 (first aid kit requirement); Schedule 2 of VAT Act (excludes prescription medicines))_ - **MCDONALD'S SA, STEERS, NANDO'S** — Standard-rated AS SUPPLIES from the restaurant's side. From the buying business's side, input tax BLOCKED under s 17(2)(a) as entertainment, UNLESS the buying vendor is in the business of providing entertainment (rare), or qualifies as employee subsistence away from usual place of work, or canteen-with-charge, or promotional. Default for a client business: no input claim. CRITICAL ENTERTAINMENT BLOCK applies as with supermarket entries above (office groceries etc.); same five exceptions apply. _(VAT Act s 1 ("entertainment" definition); s 17(2)(a) (input tax block); SARS BGR 16 (Issue 4); SARS IN 70 (supplies for no consideration); SARS VAT 411 Guide for Entertainment, Accommodation and Catering)_ - **Skill text** — Tighten the trigger: imported service is a service supplied by a non-resident OR by a resident from outside SA, to a recipient who is a resident, for utilisation otherwise than in making taxable supplies. The "net zero" works for fully taxable; partially exempt have a real cost (input apportioned). Critical detail: SA-registered electronic services suppliers (Google SA, Microsoft SA, Meta SA, Amazon SA, etc.) issue SA VAT tax invoices DIRECTLY and this is not an imported service - input is claimed normally. The s 7(1)(c) self-assessment only arises where the foreign entity bills you directly without SA VAT. _(VAT Act s 7(1)(c) and s 14; Foreign Suppliers of Electronic Services Regulations (2014, expanded 2019))_ - **GOOGLE (Workspace, Ads, Cloud)** — Google Cloud SA, Workspace, and Ads are typically billed by Google SA or Google Ireland with SA VAT charged (Google is a registered foreign electronic services supplier). If billed with SA VAT, treat as standard input. Only self-assess if invoice shows no SA VAT. _(Foreign Suppliers of Electronic Services Regulations)_ - **MICROSOFT (365, Azure)** — Microsoft is a registered foreign electronic services supplier - bills SA VAT directly. Treat as standard input on a SA VAT tax invoice. Self-assessment only for invoices without SA VAT. - **META, FACEBOOK ADS** — Meta SA Pty Ltd or Meta Platforms Ireland bills SA VAT. Standard input. - **ZOOM, SLACK** — Zoom and Slack registered for SA VAT - bill SA VAT directly. - **NOTION, OPENAI, ANTHROPIC** — Check the actual invoice. Some are now SA VAT-registered (Notion, OpenAI); some bill from US/foreign entity without SA VAT (Anthropic API direct billing as at review date). For those without SA VAT, self-assessment under s 7(1)(c) applies. - **AWS** — AWS South Africa region bills SA VAT for SA-resident accounts. Treat as standard input. - **XERO (if billed from NZ)** — Xero now bills SA customers with SA VAT (Xero South Africa). Treat as standard input. - **XERO (South Africa entity)** — Input 15% - **SAGE SOUTH AFRICA** — Input 15% - **PASTEL, SAGE PASTEL** — Input 15% - **PAYFAST (transaction fees)** — PayFast transaction fees are STANDARD-RATED at 15% and input is claimable. Same logic as bank fees: fee-based payment processing is not a "financial service" under the proviso to s 2(1). PayFast issues a monthly VAT tax invoice. See summary critical finding #15. _(VAT Act s 2(1) proviso)_ - **YOCO (transaction fees)** — Standard-rated, input claimable. Yoco issues a tax invoice in the merchant dashboard. - **PEACH PAYMENTS (fees)** — Standard-rated, input claimable. - **OWN ACCOUNT TRANSFER, INTER-ACCOUNT** — EXCLUDE - Internal movement - **LOAN, BOND REPAYMENT** — EXCLUDE - Loan principal - **SALARY, WAGES, PAYROLL** — EXCLUDE - Outside VAT scope - **DIVIDEND** — EXCLUDE - Out of scope _(VAT Act s 12(a) and s 2(1)(g))_ - **MUNICIPAL RATES, PROPERTY RATES** — EXCLUDE - Local government levy - not a supply - **Example 1: Domestic B2B revenue (15%)** — Arithmetic correct. Report on Field 1 (VAT-inclusive R115,000) with output VAT computed at Field 4 (R115,000 x 15/115 = R15,000). The skill describes net R100,000 going to Field 1 but Field 1 takes the VAT-inclusive value. _(SARS VAT201 completion guide)_ - **Example 2: Export service (zero-rated)** — Correct treatment. Note: services exported are zero-rated under s 11(2)(l), not Schedule 1 (Schedule 1 is the list of standard-rated goods historically; Schedule 2 covers zero-rated). Critical condition: the non-resident recipient must not be in the Republic at the time the services are rendered. If they are in SA, the services are standard-rated. Documentary evidence (contract, proof of payment in foreign currency, evidence of non-residence) is required. _(VAT Act s 11(2)(l))_ - **Example 3: Electricity (15%, input credit)** — Input tax on other goods/services purchased goes to Field 15 (with Field 15A for imported goods), not Field 10. Field 10 is the OUTPUT adjustment for change in use / second-hand goods exported. _(SARS VAT201 completion guide)_ - **Example 4: Zero-rated food** — Correct caution. Add: even on the conservative basis, must hold a tax invoice/till slip showing VAT to claim. Without one, no input regardless of treatment. _(VAT Act s 16(2))_ - **Example 5: Imported service (Google Ads)** — Multiple issues: (1) Google Ads is typically billed by Google SA with SA VAT directly (since electronic services regulations) - no self-assessment if invoice shows SA VAT. (2) Output for imported services goes to Field 12 (other and imported services), not Field 5. (3) Input claimed in Field 15 (other inputs), not Field 10/11. _(VAT Act s 7(1)(c); SARS VAT201 completion guide)_ - **5.1 Standard rate 15%** — Default rate for all taxable supplies. Section 7(1)(a). _(VAT Act s 7(1)(a))_ - **5.2 Zero rate 0%** — Multiple errors: (1) PRESCRIPTION MEDICINES are NOT zero-rated - they are standard-rated at 15%. (2) "Qualifying accommodation" is vague - commercial accommodation for more than 28 days has a 60% deemed taxable value (s 10(10)), it is not zero-rated. (3) Add the missing going-concern zero-rating (s 11(1)(e)). _(VAT Act s 11; Schedule 2)_ - **5.3 Exempt supplies** — Add: educational services by recognised institutions; childcare and creche; donated goods sold by associations not for gain. Confirm "financial services" means narrow s 2 definition. _(VAT Act s 12)_ - **5.4 Tax invoice requirements (Section 20)** — Threshold mixed up. The position is: (a) supplies R50 or less: NO invoice required (till slip sufficient); (b) supplies between R50 and R5,000: ABRIDGED tax invoice acceptable (omits recipient details and quantity/volume); (c) supplies above R5,000: FULL tax invoice required (seven items including recipient details and quantity). The skill swaps full and abridged. Must be issued within 21 days of the supply. _(VAT Act s 20(4), (5) and (6); SARS Tax Invoices page)_ - **5.5 Imported services** — Definition tighter: imported service is a service supplied by a person not resident or carrying on business in SA, to a SA-resident recipient, used otherwise than for making taxable supplies. Non-vendor individuals are technically required to remit on VAT215 within 30 days - widely ignored in practice but enforceable. _(VAT Act s 7(1)(c) and s 14; SARS Form VAT215)_ - **5.6 Anti-avoidance - entertainment** — Largely correct. Add the other exceptions: employee subsistence away from usual place of work; employee canteen for charge; bona fide promotional gifts subject to BGR conditions; long-distance road transport operators meals for drivers. _(VAT Act s 17(2)(a); BGR 16; SARS IN 70)_ - **5.7 Motor vehicles** — Mostly correct but tightening needed: the "motor car" definition is wider than "passenger vehicle" colloquially - it includes station wagons, double-cab LDVs (bakkies), minibuses up to 16 seats, and SUVs. The test is OBJECTIVE per IN 82 (passenger area vs loading area). Single-cab bakkies are not motor cars. The "transport services" exception is not in the Act - the actual exception under s 17(2)(c) is for vendors who CONTINUOUSLY OR REGULARLY SUPPLY MOTOR CARS in the ordinary course of business (dealers, rental companies). A passenger transport operator (taxi, ride-hailing) is also caught and CAN claim. The skill conflates these. _(VAT Act s 1 (motor car) and s 17(2)(c); SARS IN 82; RTCC v CSARS VAT 1345)_ - **5.8 Filing deadlines table** — No quarterly category. See Section 1 note above. Six categories under s 27: A, B, C, D, E, F. _(VAT Act s 27)_ - **6.1 Entertainment - is vendor in the hospitality trade?** — Add the other exceptions to the block (see 5.6 above): employee subsistence; employee canteen for charge; promotional gifts subject to BGR conditions. _(VAT Act s 17(2)(a); BGR 16)_ - **6.2 Motor car - definition** — Reasonable Tier 2 question but should explicitly state the OBJECTIVE test (passenger area vs loading area per IN 82) and include the double-cab bakkie note (caught as motor car) and SUVs (caught). Also add the rental-company / dealer exception under s 17(2)(c). _(VAT Act s 1 and s 17(2)(c); SARS IN 82)_ - **6.3 Rent - landlord opted to charge VAT?** — "Opt to charge VAT" is a UK concept. In SA, commercial landlords charge VAT if they are registered (compulsory or voluntary); residential letting is exempt regardless. Better framing: "Is this commercial or residential property? Is the landlord VAT-registered (check VAT number on invoice)?" _(VAT Act s 7 and s 12(c))_ - **6.4 Zero-rated basic food vs standard-rated food** — Itemised receipt question. _(Schedule 2 Part B)_ - **6.5 Imported services - partial exemption interaction** — Vendor with exempt income may have limited recovery. _(VAT Act s 17(1))_ - **MISSING: Fringe benefits as deemed supplies** — See summary critical finding #5. Section 18(3) deems Seventh Schedule fringe benefits as taxable supplies by the employer. Output VAT payable on cash equivalent in the month of accrual. Common items: company car, low-interest loans, free or cheap services, assets at less than market value, residential accommodation, awards over R5,000. Exclusions: exempt supplies, zero-rated supplies, entertainment supplied as a fringe benefit. _(VAT Act s 18(3), s 9(7), s 10(13))_ - **MISSING: Adjustments under s 18** — Section 18 adjustments: (a) s 18(1) when goods/services acquired for taxable use are applied for non-taxable use - output VAT payable on lesser of cost or open market value; (b) s 18(4) when previously non-claimed goods/services are applied for taxable use - input VAT claim available; (c) s 18(3) fringe benefits (above); (d) s 18(7) supplies to relatives and connected persons at non-arm's length. _(VAT Act s 18)_ - **MISSING: Bad debts and bad debts recovered** — Section 22(1) bad debt relief: vendor on invoice basis may claim input deduction equal to 15/115 of the bad debt amount, where (a) the original supply was taxable, (b) the debt is outstanding more than 12 months from due date, (c) it has been written off in the books. s 22(2) recoupment if subsequently recovered. Common practitioner trap. _(VAT Act s 22)_ - **A. Output tax structure** — Logic sound. Map to actual VAT201 fields: A1->Field 1, A2->Field 4, A3->Field 2/2A, A4->Field 3, A5->Field 12 (other and imported services), A6->Field 13. Also add capital goods (Field 1A/4A) and commercial accommodation if applicable. _(SARS VAT201 completion guide)_ - **B. Input tax structure** — Logic sound. Map to actual VAT201: B1/B2 -> Field 15 (or Field 14 for capital), B3 -> Field 15A or 14A, B4 -> Field 15 (imported services input), B5 (blocked) -> not a Field; just excluded from claim, B6 -> Field 19. _(SARS VAT201 completion guide)_ FNB, Standard Bank, ABSA, Nedbank, Capitec column structures - **CREDIT** — Incoming funds / Potential revenue - **DEBIT** — Outgoing payment / Potential expense - **ATM WITHDRAWAL** — Cash withdrawal / Tier 2 - ask - **BANK CHARGES** — Bank charges are STANDARD-RATED at 15%, input claimable. See critical finding #3. _(VAT Act s 2(1) proviso)_ - **INTEREST EARNED** — Interest received / Exempt _(VAT Act s 12(a) read with s 2(1)(f))_ - **BALANCE** — Running balance / Ignore - **SALARY / WAGES** — Payroll / Out of VAT scope - **Q1: VAT number** — VAT registration number (10 digits starting with 4) - **Q2: Tax period** — Tax period covered by this bank statement - **Q3: Filing frequency** — Add specifically: Category A/B/C/D/E/F. _(VAT Act s 27)_ - **Q4: Exports** — Do you have any exports? Evidence held? _(Export Regulation GN R316)_ - **Q5: Exempt income** — Financial services, residential rent _(VAT Act s 17(1))_ - **Q6: Entertainment vendor** — Determines whether entertainment input is blocked _(VAT Act s 17(2)(a))_ - **Q7: Vehicles for goods** — Better question: "Do you own/lease/rent any motor vehicles? What type (sedan, SUV, single-cab bakkie, double-cab bakkie, panel van, truck)? What use?" The "motor car" definition turns on construction, not use. _(VAT Act s 1 and s 17(2)(c))_ - **Q8: Imported services** — Refine: which suppliers bill SA VAT vs which bill without (the latter trigger self-assessment). - **Q9: Prior period credit** — Amount to carry forward - **MISSING: Q10 Employee fringe benefits** — Add: "Do you employ staff and grant any Seventh Schedule fringe benefits?" Triggers s 18(3) output VAT analysis. _(VAT Act s 18(3))_ - **MISSING: Q11 Tax invoice compliance** — Add: "Do all your supplier tax invoices meet the s 20 requirements (or abridged for R50-R5,000)? Have any been queried by SARS?" _(VAT Act s 20)_ - **Key legislation table** — Add: s 1 (definitions); s 8 (deemed supplies); s 9 (time of supply); s 10 (value of supply); s 14 (imported services calculation); s 15 (accounting basis); s 18 (adjustments); s 22 (bad debts); s 23 (registration); s 27 (tax periods); s 28 (returns); s 41B (rulings); s 50 (branch registration); s 72 (Commissioner's decisions). _(VAT Act)_ - **Known gaps** — No "option to tax" in SA (UK concept). Add to gaps: gold and valuable metals (DRC regulations); electronic services foreign supply; mining; long-term insurance; share blocks; instalment credit agreements; connected-person supplies. - **Self-check list** — Add: motor car block; fringe benefits (s 18(3)); change-in-use adjustments; bad debts. - **NEVER allow input on entertainment unless hospitality** — CORRECT _(VAT Act s 17(2)(a))_ - **NEVER allow input on motor cars (passenger) for mixed purposes** — Block applies regardless of business use percentage - not just "mixed purposes". Even 100% business use of a motor car is blocked (unless within s 17(2)(c) exceptions). _(VAT Act s 17(2)(c))_ - **NEVER zero-rate exports without evidence** — CORRECT _(Export Regulation GN R316)_ - **NEVER allow input from a non-VAT-registered supplier** — CORRECT _(VAT Act s 16(2) and s 16(3)(a)(ii))_ - **NEVER self-assess imported services without recording both output and input** — CORRECT _(VAT Act s 7(1)(c))_ - **NEVER present calculations as definitive** — NEVER present calculations as definitive - **MISSING prohibition: bank fees** — Add: "Never exclude bank service fees as exempt - they are standard-rated and input claimable." _(VAT Act s 2(1) proviso)_ - **MISSING prohibition: fringe benefits** — Add: "Never omit s 18(3) output VAT on employee fringe benefits." _(VAT Act s 18(3))_ Note: skill has the disclaimer duplicated at end of file (sections 514-516 and 521-525). One copy is enough. ## Section 1 — Quick reference **Section 1 — Quick reference** | Field | Value | | --- | --- | | Country | South Africa (Republic of South Africa) | | Tax | VAT (Value-Added Tax) | | Currency | ZAR (South African Rand / R) | | Tax year | Tax periods under s 27: Category A bimonthly (default); B monthly (>R30m); C six-monthly (farming R30m); Category C six-monthly (farming 40% of output or input | | MEDIUM conservative default count | >4 per period | | LOW absolute net VAT position | ZAR 30,000 | ### Required inputs Minimum viable — bank statement for the tax period in CSV, PDF, or pasted text. VAT registration number (starting with 4). Recommended — tax invoices for all input tax claims above ZAR 5,000, sales invoices for all output, prior period excess credit (Field 14). Ideal — complete creditors/debtors ledger, import VAT certificates (SAD500), asset register, prior VAT201 return. Refusal if minimum missing — SOFT WARN. No bank statement = hard stop. "Input tax credits require a valid VAT tax invoice per Section 20 of the VAT Act. All credits are provisional pending invoice verification." ### Refusal catalogue - **R-ZA-1 — Non-VAT-registered vendor** — "Only registered vendors can charge VAT and claim input tax. Confirm VAT registration before proceeding." _(R-ZA-1)_ - **R-ZA-2 — Partial exemption / apportionment** — "If the vendor makes both taxable and exempt supplies, input tax must be apportioned under Section 17(1) of the VAT Act. The apportionment ratio changes annually — out of scope without full-year data. Escalate to a CA(SA)." _(R-ZA-2, Section 17(1) VAT Act)_ - **R-ZA-3 — Capital goods scheme (Section 18A)** — "Adjustments to input tax on capital goods where use changes between taxable and non-taxable purposes require specialist computation. Out of scope." _(R-ZA-3, Section 18A)_ - **R-ZA-4 — Financial services (Section 2)** — "Financial services have complex VAT treatment. Banks, insurers, and financial institutions require specialist handling. Out of scope." _(R-ZA-4, Section 2)_ - **R-ZA-5 — Property transactions** — "Property development, sale of commercial property, and going-concern zero-rating elections are highly fact-sensitive. Escalate to specialist." _(R-ZA-5)_ ### 3.1 South African banks — fees (standard-rated per s 2(1) proviso) **South African banks — fees (standard-rated per s 2(1) proviso)** _(s 2(1) proviso; s 12(a); s 2(1)(f))_ | Pattern | Treatment | Notes | | --- | --- | --- | | ABSA BANK, ABSA GROUP | Input 15% | Bank service fees are standard-rated per s 2(1) proviso; banks issue monthly VAT tax invoices. Interest remains exempt. | | STANDARD BANK, STANBIC | Input 15% | Standard-rated per s 2(1) proviso | | FIRSTRAND, FNB, FIRST NATIONAL BANK | Input 15% | Standard-rated per s 2(1) proviso | | NEDBANK | Input 15% | Standard-rated per s 2(1) proviso | | CAPITEC BANK | Input 15% | Standard-rated per s 2(1) proviso | | INVESTEC | Input 15% | Standard-rated per s 2(1) proviso | | AFRICAN BANK | Input 15% | Standard-rated per s 2(1) proviso | | BANK CHARGES, SERVICE FEE | Input 15% | Standard-rated per s 2(1) proviso | | INTEREST | EXCLUDE | Exempt under s 12(a) / s 2(1)(f) | ### 3.2 South African government and statutory (exclude) **South African government and statutory (exclude)** | Pattern | Treatment | Notes | | --- | --- | --- | | SARS, SOUTH AFRICAN REVENUE SERVICE | EXCLUDE | Tax payment | | UIF, UNEMPLOYMENT INSURANCE FUND | EXCLUDE | Statutory contribution | | WORKMEN'S COMP, COIDA | EXCLUDE | Compensation fund | | MUNICIPALITY, LOCAL AUTHORITY (rates) | EXCLUDE | Rates and taxes — outside VAT scope | | ROAD ACCIDENT FUND, RAF | EXCLUDE | Statutory levy | ### 3.3 South African utilities (taxable at 15%) **South African utilities (taxable at 15%)** | Pattern | Treatment | Rate | Notes | | --- | --- | --- | --- | | ESKOM | Input 15% | 15% | National electricity — taxable | | CITY POWER (Johannesburg) | Input 15% | 15% | Municipal electricity — taxable | | CAPE TOWN ELECTRICITY | Input 15% | 15% | Municipal electricity — taxable | | RAND WATER, RAND WATER BOARD | Input 15% | 15% | Water — taxable | | CITY OF CAPE TOWN WATER | Input 15% | 15% | Water — taxable | | VODACOM | Input 15% | 15% | Mobile/internet — taxable | | MTN SOUTH AFRICA | Input 15% | 15% | Mobile — taxable | | CELL C | Input 15% | 15% | Mobile — taxable | | TELKOM SA | Input 15% | 15% | Fixed-line/internet — taxable | | RAIN NETWORK | Input 15% | 15% | Internet — taxable | | AFRIHOST | Input 15% | 15% | Internet — taxable | ### 3.4 Transport and logistics **Transport and logistics** _(s 12(g))_ | Pattern | Treatment | Rate | Notes | | --- | --- | --- | --- | | SOUTH AFRICAN AIRWAYS, SAA | Check route | 0%/15% | International 0%; domestic 15% | | FLYSAFAIR | Input 15% | 15% | Domestic airline — 15% | | AIRLINK | Check route | 0%/15% | International 0%; domestic 15% | | KULULA.COM | Input 15% | 15% | Domestic — 15% | | UBER SOUTH AFRICA / BOLT SOUTH AFRICA | EXEMPT (s 12(g)) | — | Fare is exempt -- road transport of fare-paying passengers. No input VAT claimable on the fare. Only the booking fee (if separately shown on Uber tax invoice) may carry input VAT. | | DHL SOUTH AFRICA | Input 15% | 15% | Courier — taxable | | FEDEX SOUTH AFRICA | Input 15% | 15% | Courier — taxable | | DAWN WING | Input 15% | 15% | Courier — taxable | | THE COURIER GUY, TCG | Input 15% | 15% | Courier — taxable | | ARAMEX SOUTH AFRICA | Input 15% | 15% | Courier — taxable | ### 3.5 Food and retail **Food and retail** _(s 17(2)(a))_ | Pattern | Treatment | Rate | Notes | | --- | --- | --- | --- | | CHECKERS, SHOPRITE | Input 15%/0% | Mixed | Basic zero-rated food items; non-food 15%. For office consumption (tea, coffee, staff fridge, year-end function), input tax is BLOCKED under s 17(2)(a) entertainment regardless of zero-rate/standard-rate split. Only claimable where items are for resale by a vendor in the entertainment trade. | | PICK N PAY, PNP | Input 15%/0% | Mixed | Same — zero-rate basic foodstuffs. For office consumption (tea, coffee, staff fridge, year-end function), input tax is BLOCKED under s 17(2)(a) entertainment regardless of zero-rate/standard-rate split. Only claimable where items are for resale by a vendor in the entertainment trade. | | WOOLWORTHS FOOD | Input 15%/0% | Mixed | Food hall: basic items 0%; prepared/luxury food 15%. For office consumption (tea, coffee, staff fridge, year-end function), input tax is BLOCKED under s 17(2)(a) entertainment regardless of zero-rate/standard-rate split. Only claimable where items are for resale by a vendor in the entertainment trade. | | SPAR | Input 15%/0% | Mixed | Same. For office consumption (tea, coffee, staff fridge, year-end function), input tax is BLOCKED under s 17(2)(a) entertainment regardless of zero-rate/standard-rate split. Only claimable where items are for resale by a vendor in the entertainment trade. | | FOOD LOVERS MARKET | Input 15%/0% | Mixed | Same. For office consumption (tea, coffee, staff fridge, year-end function), input tax is BLOCKED under s 17(2)(a) entertainment regardless of zero-rate/standard-rate split. Only claimable where items are for resale by a vendor in the entertainment trade. | | CLICKS | Input 15% | 15% | Health/beauty retail — 15% | | DIS-CHEM | Input 15% | 15% | Prescription medicines are standard-rated at 15%; all pharmacy items 15% | | MCDONALD'S SA, STEERS, NANDO'S | BLOCKED under s 17(2)(a) | 15% | BLOCKED under s 17(2)(a) for the buying business. Only the restaurant itself (being in the entertainment trade) can claim its own inputs. | - **Zero-rated basic foodstuffs** — Brown bread, maize meal, mielie rice, dried mealies, dried beans, lentils, pilchards/sardines in tins, milk, eggs, fruits and vegetables, vegetable oil, edible legumes. These are zero-rated under Schedule 2 of the VAT Act. _(Schedule 2 of the VAT Act)_ ### 3.6 SaaS — international suppliers (reverse charge / imported services) - **Imported services rule** — Under VAT Act Section 7(1)(c), imported services from abroad are subject to VAT if the recipient is a non-vendor or partially exempt vendor. For fully taxable vendors, VAT on imported services can be claimed back as input tax in the same period — net effect zero. _(VAT Act Section 7(1)(c))_ **SaaS — international suppliers (reverse charge / imported services)** _(VAT Act Section 7(1)(c))_ | Pattern | Treatment | Notes | | --- | --- | --- | | GOOGLE (Workspace, Ads, Cloud) | Imported services — self-assess 15% | Output and input in same period (net zero for fully taxable) | | MICROSOFT (365, Azure) | Imported services — self-assess 15% | Same | | META, FACEBOOK ADS | Imported services — self-assess 15% | Same | | ZOOM, SLACK | Imported services — self-assess 15% | Same | | NOTION, OPENAI, ANTHROPIC | Imported services — self-assess 15% | Same | | AWS | Imported services — self-assess 15% | Same | | XERO (if billed from NZ) | Imported services — self-assess 15% | Same | | SAGE (if billed from UK) | Imported services — self-assess 15% | Same | ### 3.7 Local SaaS and professional tools (15%) **Local SaaS and professional tools (15%)** | Pattern | Treatment | Rate | Notes | | --- | --- | --- | --- | | XERO (South Africa entity) | Input 15% | 15% | Accounting software | | SAGE SOUTH AFRICA | Input 15% | 15% | Accounting/payroll | | PASTEL, SAGE PASTEL | Input 15% | 15% | South African accounting | | QUICKBOOKS SOUTH AFRICA | Input 15% | 15% | Accounting SaaS | ### 3.8 Payment processors (standard-rated per s 2(1) proviso) **Payment processors (standard-rated per s 2(1) proviso)** _(s 2(1) proviso)_ | Pattern | Treatment | Notes | | --- | --- | --- | | PAYFAST (transaction fees) | Input 15% | Standard-rated -- fee-based payment processing is not a financial service per s 2(1) proviso | | YOCO (transaction fees) | Input 15% | Standard-rated -- fee-based payment processing is not a financial service per s 2(1) proviso | | PEACH PAYMENTS (fees) | Input 15% | Standard-rated -- fee-based payment processing is not a financial service per s 2(1) proviso | | STRIPE (fees) | Input 15% | Standard-rated -- fee-based payment processing is not a financial service per s 2(1) proviso | ### 3.9 Internal transfers and exclusions **Internal transfers and exclusions** | Pattern | Treatment | Notes | | --- | --- | --- | | OWN ACCOUNT TRANSFER, INTER-ACCOUNT | EXCLUDE | Internal movement | | LOAN, BOND REPAYMENT | EXCLUDE | Loan principal | | SALARY, WAGES, PAYROLL | EXCLUDE | Outside VAT scope | | DIVIDEND | EXCLUDE | Out of scope | | MUNICIPAL RATES, PROPERTY RATES | EXCLUDE | Local government levy — not a supply | | ATM, CASH WITHDRAWAL | Tier 2 — ask | Default exclude | ## Section 4 — Worked examples Six classifications from a hypothetical Johannesburg-based IT consultant. Format: FNB (First National Bank) account statement. ### Example 1 — Domestic B2B revenue (15%) **Input line:** `15 Apr 2025 CREDIT ABC TECHNOLOGY (PTY) LTD INV-2025-041 R 115,000.00 R 500,000.00` **Reasoning:** Incoming R 115,000 (VAT-inclusive) from a SA company for IT consulting. Standard 15% VAT. Gross R 115,000 includes VAT. Net = R 100,000 (taxable supply) + R 15,000 output tax (R 115,000 × 15/115). A VAT-compliant tax invoice must be issued per Section 20 of the VAT Act. Report R 115,000 VAT-inclusive on VAT201 Field 1. Output VAT R 15,000 goes to Field 4. **Classification:** Output tax 15% — R 15,000. Net supply: R 100,000. VAT-inclusive: R 115,000. ### Example 2 — Export service (zero-rated) **Input line:** `22 Apr 2025 CREDIT ACME CORP USA USD 5,000 (R 92,500) R 592,500.00` **Reasoning:** USD receipt from a US company for IT consulting services exported from South Africa. Zero-rated under Schedule 1 of the VAT Act if the services are physically performed in SA but consumed outside SA. Evidence: contract showing foreign client, payment in foreign currency. Report R 92,500 on Field 2 (zero-rated). Output tax: R 0. **Classification:** Zero-rated export — R 92,500. Output tax: R 0. ### Example 3 — Electricity (15%, input credit) **Input line:** `10 Apr 2025 DEBIT ESKOM HOLDINGS SOC April electricity -R 11,500.00 R 388,500.00` **Reasoning:** Eskom electricity bill. Taxable at 15%. Gross R 11,500. Net = R 10,000 + R 1,500 input tax (R 11,500 × 15/115). Eskom issues VAT-compliant tax invoices — input credit of R 1,500 claimable. Report on Field 15 (input VAT on other goods/services). **Classification:** Input tax 15% — R 1,500. Net expense: R 10,000. ### Example 4 — Zero-rated food (basic foodstuffs) **Input line:** `12 Apr 2025 DEBIT PICK N PAY Groceries (business kitchen) -R 800.00 R 387,700.00` **Reasoning:** Grocery purchase. If itemised receipt shows basic foodstuffs only (brown bread, eggs, fresh vegetables, etc.) — zero-rated under Schedule 2 of the VAT Act. No input tax on zero-rated items (the input tax rate is 0%). If mixed grocery (some 15% non-food items), split the purchase. Without itemised receipt: conservative default is 15% on full amount. **Classification:** Zero-rated (if basic foodstuffs only) — R 0 input tax. Conservative default: 15% on R 800 = R 104 input tax / (R 695.65 net + R 104 VAT = R 800 gross). Flag: obtain itemised receipt. ### Example 5 — Imported service — self-assess (Google Ads) **Input line:** `08 Apr 2025 DEBIT GOOGLE IRELAND LIMITED Google Ads April -R 10,000.00 R 377,700.00` **Reasoning:** Google Ads billed from Ireland. Note: Google typically bills SA VAT directly now via its local entity; check the invoice. If billed by a non-resident entity, this is an "imported service" under Section 7(1)(c) of the VAT Act. The South African VAT-registered vendor must self-assess 15% VAT. Self-assessed output: R 10,000 × 15% = R 1,500 (add to Field 12 — other output adjustments and imported services). For a fully taxable vendor, simultaneously claim same as input tax R 1,500 (Field 15 — input VAT on other goods/services). Net effect: zero. Must be disclosed in the VAT201. **Classification:** Imported service — self-assess output R 1,500 (Field 12); input R 1,500 (Field 15). Net: R 0 for fully taxable vendor. ### Example 6 — Residential rent (exempt, no input tax) **Input line:** `01 Apr 2025 DEBIT CITY PROP MANAGEMENT April office rent -R 23,000.00 R 354,700.00` **Reasoning:** Monthly rent. If this is for a commercial office space where the landlord has opted to charge VAT and issues a VAT invoice showing 15%, then input tax of R 3,000 is claimable (gross R 23,000 / 1.15 × 15%). If the landlord has NOT opted to charge VAT (which is common for smaller landlords), then the rent is exempt and no input tax is available. Default: ask for the landlord's VAT invoice. **Classification:** Tier 2 — ask. If VAT invoice received from landlord: Input 15% — R 3,000. If no VAT invoice: EXEMPT — no input tax. ### 5.1 Standard rate 15% - **Standard rate** — 15% (Default rate for all taxable supplies) _(VAT Act No. 89 of 1991, Section 7(1)(a))_ ### 5.2 Zero rate 0% - **Zero rate 0% supplies** — Exports of goods and qualifying services; basic foodstuffs (Schedule 2); illuminating paraffin; petrol and diesel (specific provisions); certain agricultural inputs; supply of enterprise as going concern (s 11(1)(e)); gold to SARB/bank. Evidence required for export zero-rating. Prescription medicines are STANDARD-RATED at 15%. _(VAT Act Section 11; Schedule 2)_ ### 5.3 Exempt supplies - **Exempt supplies** — Financial services (Section 2); residential rental; public road and rail transport. No output tax charged; no input tax claimable on costs. _(VAT Act Section 12)_ ### 5.4 Tax invoice requirements (Section 20) - **Supplies R50 or less** — NO invoice required (till slip sufficient) _(Section 20)_ - **Supplies R50 to R5,000** — ABRIDGED tax invoice (omits recipient details) _(Section 20)_ - **Supplies above R5,000** — FULL tax invoice required with supplier name/address/VAT number, invoice number, date, buyer name/address/VAT number (if VAT-registered), description, net amount, VAT rate, VAT amount, total _(Section 20)_ - **Tax invoice issuance timeframe** — Must be issued within 21 days. _(Section 20)_ ### 5.5 Imported services - **Imported services treatment** — Services supplied by a non-resident to a South African recipient are subject to VAT under Section 7(1)(c). Fully taxable vendors self-assess (output = input; net zero). Partially exempt or non-vendor recipients cannot recover and face a cost. _(VAT Act Section 7(1)(c))_ ### 5.6 Anti-avoidance — entertainment - **Entertainment input tax block** — Input tax on entertainment, accommodation, and food/beverages is BLOCKED under Section 17(2)(a) UNLESS the vendor is in the business of providing entertainment (hotels, restaurants, conference venues). "Entertainment" includes meals, beverages, social functions. _(Section 17(2)(a))_ ### 5.7 Motor vehicles - **Motor vehicle input tax block** — Input tax on motor cars (as defined — passenger vehicles) is BLOCKED under Section 17(2)(c). Exception: if the vendor trades in motor cars or provides transport services as their primary business. Bakkies (utes/pickups) used exclusively for business: may qualify. _(Section 17(2)(c))_ ### 5.8 Filing deadlines **Filing deadlines** | Category | Period | Due date | | --- | --- | --- | | Category B (>R30m) | Monthly | Last business day of following month | | Category A (default) | Bimonthly | Last business day of following month | | Category C (farming