South Africa VAT (VAT201) Skill v2.1

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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 <R1.5m); D annual (connected-party farming/rental); E annual (connected-party rental); F four-monthly (micro businesses on turnover tax). No quarterly category exists.
Standard rate	15%
Zero rate	0% (exports; basic foodstuffs (Schedule 2); international transport; certain farming inputs; petrol/diesel; illuminating paraffin; supply of enterprise as going concern (s 11(1)(e)); gold to SARB/bank)
Exempt	Financial services (narrow s 2 definition -- interest, exchange margins, life insurance, dealing in securities; fee-based services are STANDARD-RATED per s 2(1) proviso), residential rental, public road and rail transport (s 12(g)), educational services by recognised institutions, childcare, donated goods/services by associations not for gain. Short-term insurance is STANDARD-RATED, not exempt.
Registration threshold	ZAR 2,300,000 in any consecutive 12-month period (from 1 April 2026). Voluntary registration: ZAR 120,000.
Tax authority	SARS (South African Revenue Service)
Return form	VAT201 (eFiling)
Filing portal	SARS eFiling (https://efiling.sars.gov.za)
Filing frequencies	Category A bimonthly (default); Category B monthly (>R30m); Category C six-monthly (farming <R1.5m); Category D annual (connected-party farming/rental); Category E annual (connected-party rental); Category F four-monthly (micro businesses on turnover tax)
Filing deadline	Last business day of month following tax period (eFiling); 25th for paper (not recommended)
Tax invoice	VAT-compliant invoice — required for input tax
VAT number	Format: 4xxxxxxxx (10 digits starting with 4)
Contributor	Open Accountants Community
Validated by	Werner Britz CA(SA), Spurwing CFO
Validation date	May 2026
Skill version	2.1

Key VAT201 fields

Field	Meaning
1	Standard-rated supplies (VAT-inclusive, excluding capital goods)
1A	Standard-rated capital goods supplied (VAT-inclusive)
2	Zero-rated supplies (excluding exports)
2A	Zero-rated exported goods
3	Exempt and non-supplies
4	Output VAT on Field 1 (Field 1 x 15/115)
4A	Output VAT on Field 1A
5	Commercial accommodation supplied for 28+ days
9	Output VAT on commercial accommodation
10	Change-in-use / second-hand goods exported (consideration)
11	Field 10 x 15/115
12	Other output adjustments and imported services
13	Total output tax (4 + 4A + 9 + 11 + 12)
14	Input VAT on capital goods
14A	Input VAT on imported capital goods
15	Input VAT on other goods/services
15A	Input VAT on imported other goods/services
16	Change-in-use input adjustment
17	Bad debts (s 22 relief)
18	Other input adjustments
19	Total input tax (14 + 14A + 15 + 15A + 16 + 17 + 18)
20	Net VAT payable / refundable (13 - 19)

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	15% standard
Unknown counterparty country	Domestic South Africa
Unknown export qualification	15% until export evidence confirmed
Unknown business-use % (vehicle, entertainment)	0% input tax. Note: for motor cars as defined, input is FULLY BLOCKED under s 17(2)(c) regardless of business use percentage.
Unknown whether tax invoice compliant	No input tax
Unknown whether zero-rated or exempt	Treat as taxable 15%
Unknown B2B vs B2C for cross-border	15% if consumed in South Africa

Red flag thresholds

Threshold	Value
HIGH single transaction	ZAR 50,000
HIGH tax delta on single default	ZAR 7,500
MEDIUM counterparty concentration	>40% of output or input
MEDIUM conservative default count	>4 per period
LOW absolute net VAT position	ZAR 30,000

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Section 2 — Required inputs and refusal catalogue

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-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-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-4 — Financial services (Section 2). "Financial services have complex VAT treatment. Banks, insurers, and financial institutions require specialist handling. Out of scope."

R-ZA-5 — Property transactions. "Property development, sale of commercial property, and going-concern zero-rating elections are highly fact-sensitive. Escalate to specialist."

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Section 3 — Supplier pattern library

3.1 South African banks — fees (standard-rated per s 2(1) proviso)

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)

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%)

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

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

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.

Note on 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.

3.6 SaaS — international suppliers (reverse charge / imported services)

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.

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%)

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)

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

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

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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.

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Section 5 — Tier 1 rules (compressed)

5.1 Standard rate 15%

Default rate for all taxable supplies. Legislation: VAT Act No. 89 of 1991, Section 7(1)(a).

5.2 Zero rate 0%

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%. Legislation: VAT Act Section 11; Schedule 2.

5.3 Exempt supplies

Financial services (Section 2); residential rental; public road and rail transport. No output tax charged; no input tax claimable on costs. Legislation: VAT Act Section 12.

5.4 Tax invoice requirements (Section 20)

• Supplies R50 or less: NO invoice required (till slip sufficient)
• Supplies R50 to R5,000: ABRIDGED tax invoice (omits recipient details)
• 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.

Must be issued within 21 days.

5.5 Imported services

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. Legislation: VAT Act Section 7(1)(c).

5.6 Anti-avoidance — entertainment

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.

5.7 Motor vehicles

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.

5.8 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 <R1.5m)	Six-monthly	Last business day of following month
Category D (connected-party farming/rental)	Annual	Last business day of following month
Category E (connected-party rental)	Annual	Last business day of following month
Category F (micro business turnover tax)	Four-monthly	Last business day of following month

5.9 Penalties

Offence	Penalty
Late return	ZAR 100–ZAR 16,000 per month late
Late payment	10% of tax due + interest at prescribed rate
Understatement	10%–200% of shortfall depending on intent
Fraud	Criminal prosecution

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Section 6 — Tier 2 catalogue

6.1 Entertainment — is vendor in the hospitality trade?

What it shows: Restaurant, entertainment, or accommodation expense. What's missing: Whether the vendor's primary business is hospitality/entertainment (unblocks the input). Conservative default: BLOCKED — no input tax. Question to ask: "Is this entertainment expense directly related to the provision of entertainment to customers (e.g., you are a restaurant, hotel, or conference venue)? If not, the input tax is blocked."

6.2 Motor vehicle — is it a "motor car" as defined?

What it shows: Vehicle purchase, lease, or maintenance. What's missing: Whether the vehicle is a "motor car" (blocked) or a qualifying vehicle. Conservative default: BLOCKED — no input tax. Question to ask: "Is this a passenger vehicle (sedan, SUV, hatchback) used for business? If yes: blocked. Is it a bakkie/van used exclusively for business goods transport? If exclusively business use: may be unblocked."

6.3 Rent — has landlord opted to charge VAT?

What it shows: Monthly rent payment. What's missing: Whether the landlord is VAT-registered and has charged VAT on the invoice. Conservative default: No input tax (treat as exempt until VAT invoice confirmed). Question to ask: "Does your landlord issue a VAT tax invoice for the rent showing their VAT number and 15% VAT? If not, no input credit is available."

6.4 Zero-rated basic food vs. standard-rated food

What it shows: Supermarket purchase. What's missing: Itemised receipt showing which items are basic (zero-rated) vs. standard (15%). Conservative default: 15% on full amount. Question to ask: "Do you have an itemised till slip? Items like brown bread, eggs, fresh vegetables, milk are zero-rated; packaged snacks, prepared food, non-food items are 15%."

6.5 Imported services — partial exemption interaction

What it shows: Payment for foreign digital services. What's missing: Whether the vendor has any exempt income that blocks full input tax recovery on imported services. Conservative default: Self-assess output and input at 15% (net zero for fully taxable). Question to ask: "Does the business have any exempt income (residential rent, financial services)? If yes, the imported services input tax recovery may be limited."

6.6 Motor vehicle — is it a "motor car" as defined?

Input tax on the supply of a "motor car" is BLOCKED under s 17(2)(c). "Motor car" definition includes sedans, SUVs, double-cab bakkies, minibuses up to 16 seats. Objective test per IN 82 (passenger area vs loading area). Single-cab bakkies are NOT motor cars. Running costs (fuel, repairs, insurance) ARE claimable even on blocked motor cars. Exception: vendor who continuously supplies motor cars in ordinary course (dealers, rental companies).

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Section 7 — Excel working paper template

SOUTH AFRICA VAT201 WORKING PAPER
Tax Period: ____________  VAT Registration No.: ____________

A. OUTPUT TAX
  A1. Standard-rated supplies at 15% (net)     ___________
  A2. Output tax 15% (A1 × 15/115 of gross OR A1 × 15%)  ___
  A3. Zero-rated supplies (net)                ___________
  A4. Exempt supplies (net)                    ___________
  A5. Imported services self-assessed output   ___________
  A6. Total output tax (A2 + A5)               ___________

B. INPUT TAX
  B1. Standard-rated purchases (net)           ___________
  B2. Input tax at 15% (B1 × 15/115)           ___________
  B3. Import VAT (SAD500)                      ___________
  B4. Imported services input (self-assessed)  ___________
  B5. Blocked input (entertainment, motor cars) ___________
  B6. Net input tax (B2+B3+B4 − B5)            ___________

C. NET VAT
  C1. Net VAT (A6 − B6)                         ___________
  C2. Prior period credit                       ___________
  C3. Net payable / (refund) (C1 − C2)          ___________

REVIEWER FLAGS:
  [ ] Tax invoices (Section 20) confirmed for all input claims?
  [ ] Entertainment and motor car inputs correctly blocked?
  [ ] Export evidence held for zero-rated supplies?
  [ ] Imported services self-assessed (output = input)?
  [ ] Basic foodstuffs correctly zero-rated?
  [ ] Rent — landlord VAT invoice confirmed?

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Section 8 — Bank statement reading guide

Common South African bank statement formats

Bank	Key columns	Date format	Amount
FNB	Date, Description, Debit, Credit, Balance	DD Mon YYYY	ZAR with 2 decimals
Standard Bank	Date, Narrative, Debit, Credit, Balance	DD MMM YYYY	ZAR
ABSA	Date, Description, Amount, Balance	DD/MM/YYYY	ZAR
Nedbank	Date, Details, Debit, Credit, Balance	DD/MM/YYYY	ZAR
Capitec	Date, Description, Debit, Credit, Balance	YYYY-MM-DD	ZAR

Key South African banking terms

Term	Meaning	Classification hint
CREDIT	Incoming funds	Potential revenue
DEBIT	Outgoing payment	Potential expense
ATM WITHDRAWAL	Cash withdrawal	Tier 2 — ask
BANK CHARGES	Bank fee	Standard-rated (s 2(1) proviso) — claim input VAT
INTEREST EARNED	Interest received	Exempt
BALANCE	Running balance	Ignore
SALARY / WAGES	Payroll	Out of VAT scope
EFT / EFT DEBIT	Electronic fund transfer	Check direction

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Section 9 — Onboarding fallback

SOUTH AFRICA VAT ONBOARDING — MINIMUM QUESTIONS
1. VAT registration number (10 digits starting with 4)?
2. Tax period covered by this bank statement?
3. Filing frequency: Category A bimonthly, B monthly, C six-monthly, D/E annual, F four-monthly?
4. Do you have any exports (zero-rated)? Evidence held?
5. Do you have exempt income (financial services, residential rent)?
6. Does the business provide entertainment as its primary service?
   (Determines whether entertainment input tax is blocked)
7. Are any vehicles used exclusively for business goods transport?
8. Imported services (Google, Microsoft, etc.) — confirm for self-assessment
9. Prior period credit/refund amount to carry forward?

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Section 10 — Reference material

Key legislation

Topic	Reference
VAT Act	Value-Added Tax Act No. 89 of 1991
Standard rate	Section 7(1)(a)
Zero rate	Section 11; Schedule 2
Exemptions	Section 12
Input tax	Section 16
Blocked input — entertainment	Section 17(2)(a)
Blocked input — motor cars	Section 17(2)(c)
Tax invoice	Section 20
Imported services	Section 7(1)(c)
Penalties	Tax Administration Act No. 28 of 2011

Known gaps

• Partial exemption (Section 17(1)) apportionment — escalate
• Property going-concern zero-rating — escalate
• Financial services VAT — escalate
• Capital goods adjustments (Section 18A) — escalate

Self-check

• All tax invoices Section 20 compliant
• Entertainment and motor car inputs blocked
• Export zero-rating supported by evidence
• Imported services self-assessed
• Basic foodstuffs correctly split from 15% items
• Prior period credit carried forward

Changelog

Version	Date	Change
1.0	2024	Initial
2.0	April 2026	v2.0 rewrite: pattern library, worked examples, no inline tier tags
2.1	May 2026	Validated by Werner Britz CA(SA); corrected registration threshold to R2.3m; corrected bank fees and payment processors to standard-rated; corrected VAT201 field structure; corrected Uber/Bolt to exempt; added motor car and entertainment blocks; fixed tax invoice thresholds; removed prescription medicines from zero-rated; fixed filing categories

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Prohibitions

• NEVER allow input tax on entertainment expenses unless vendor's primary business is hospitality
• NEVER allow input tax on motor cars (passenger vehicles) used for mixed purposes
• NEVER zero-rate exports without evidence (customs documents, foreign payment records)
• NEVER allow input tax from a non-VAT-registered supplier
• NEVER self-assess imported services without recording both output and input in the same period
• NEVER present calculations as definitive — direct to a CA(SA) or registered tax practitioner
• NEVER claim input on the supply of a motor car as defined, unless within s 17(2)(c) exception
• NEVER claim input on entertainment unless vendor is in the entertainment trade or supply is employee subsistence
• NEVER exclude bank service fees as exempt -- they are standard-rated (s 2(1) proviso)
• NEVER omit output VAT on Seventh Schedule fringe benefits under s 18(3)

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Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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