Not tax advice. Computation tools only. Have a professional review before filing.
OOpenAccountants
openaccountants/skills/south-africa-vat.md
south-africa-vat.md517 lines24.0 KB
v20
1---
2name: south-africa-vat
3description: Use this skill whenever asked to prepare, review, or classify transactions for a South Africa VAT return (VAT201), classify transactions for South African VAT purposes, or advise on VAT registration and filing in South Africa. Trigger on phrases like "South Africa VAT", "VAT201", "SARS VAT", "input tax South Africa", "output tax South Africa", "South African Revenue Service VAT", or any SA VAT request. ALWAYS read this skill before touching any South Africa VAT work.
4version: 2.0
5jurisdiction: ZA
6tax_year: 2025
7category: international
8depends_on:
9 - vat-workflow-base
10---
11 
12# South Africa VAT (VAT201) Skill v2.0
13 
14---
15 
16## Section 1 — Quick reference
17 
18| Field | Value |
19|---|---|
20| Country | South Africa (Republic of South Africa) |
21| Tax | VAT (Value-Added Tax) |
22| Currency | ZAR (South African Rand / R) |
23| Tax year | Tax period (bi-monthly for most; monthly for large vendors; quarterly/annual for small) |
24| Standard rate | 15% |
25| Zero rate | 0% (exports; basic foodstuffs; international transport; certain farming inputs; petrol/diesel; residential accommodation on long-term letting by developers; certain financial instruments) |
26| Exempt | Financial services (lending, insurance), residential rental, public transport by road/rail |
27| Registration threshold | ZAR 1,000,000 per 12-month period |
28| Tax authority | SARS (South African Revenue Service) |
29| Return form | VAT201 (eFiling) |
30| Filing portal | SARS eFiling (https://efiling.sars.gov.za) |
31| Filing frequencies | Monthly (>ZAR 30M/year); Bi-monthly (most vendors); Quarterly/Semi-annual/Annual (approved small vendors) |
32| Filing deadline | Last business day of month following tax period (eFiling); 25th for paper (not recommended) |
33| Tax invoice | VAT-compliant invoice — required for input tax |
34| VAT number | Format: 4xxxxxxxx (10 digits starting with 4) |
35| Contributor | Open Accountants Community |
36| Validated by | Pending — requires sign-off by a South African CA(SA) or registered tax practitioner |
37| Skill version | 2.0 |
38 
39### Key VAT201 fields
40 
41| Field | Meaning |
42|---|---|
43| Field 1 | Standard-rated supplies (output tax base at 15%) |
44| Field 1A | Output tax at 15% (Field 1 × 15/115) |
45| Field 2 | Zero-rated supplies |
46| Field 3 | Exempt supplies |
47| Field 4 | Total supplies (1+2+3) |
48| Field 5 | Total output tax (Field 1A) |
49| Field 10 | Input tax — standard-rated purchases |
50| Field 11 | Input tax — imported goods/services |
51| Field 12 | Total input tax (10+11) |
52| Field 13 | Net VAT payable/refundable (5−12) |
53| Field 14 | VAT refund requested (if 12 > 5) |
54| Field 15 | VAT payable (if 5 > 12) |
55 
56### Conservative defaults
57 
58| Ambiguity | Default |
59|---|---|
60| Unknown rate on a sale | 15% standard |
61| Unknown counterparty country | Domestic South Africa |
62| Unknown export qualification | 15% until export evidence confirmed |
63| Unknown business-use % (vehicle, entertainment) | 0% input tax |
64| Unknown whether tax invoice compliant | No input tax |
65| Unknown whether zero-rated or exempt | Treat as taxable 15% |
66| Unknown B2B vs B2C for cross-border | 15% if consumed in South Africa |
67 
68### Red flag thresholds
69 
70| Threshold | Value |
71|---|---|
72| HIGH single transaction | ZAR 50,000 |
73| HIGH tax delta on single default | ZAR 7,500 |
74| MEDIUM counterparty concentration | >40% of output or input |
75| MEDIUM conservative default count | >4 per period |
76| LOW absolute net VAT position | ZAR 30,000 |
77 
78---
79 
80## Section 2 — Required inputs and refusal catalogue
81 
82### Required inputs
83 
84**Minimum viable** — bank statement for the tax period in CSV, PDF, or pasted text. VAT registration number (starting with 4).
85 
86**Recommended** — tax invoices for all input tax claims above ZAR 5,000, sales invoices for all output, prior period excess credit (Field 14).
87 
88**Ideal** — complete creditors/debtors ledger, import VAT certificates (SAD500), asset register, prior VAT201 return.
89 
90**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."
91 
92### Refusal catalogue
93 
94**R-ZA-1 — Non-VAT-registered vendor.** "Only registered vendors can charge VAT and claim input tax. Confirm VAT registration before proceeding."
95 
96**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)."
97 
98**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."
99 
100**R-ZA-4 — Financial services (Section 2).** "Financial services have complex VAT treatment. Banks, insurers, and financial institutions require specialist handling. Out of scope."
101 
102**R-ZA-5 — Property transactions.** "Property development, sale of commercial property, and option-to-tax elections are highly fact-sensitive. Escalate to specialist."
103 
104---
105 
106## Section 3 — Supplier pattern library
107 
108### 3.1 South African banks — fees (exempt / exclude)
109 
110| Pattern | Treatment | Notes |
111|---|---|---|
112| ABSA BANK, ABSA GROUP | EXCLUDE (fee lines) | Financial service — VAT exempt |
113| STANDARD BANK, STANBIC | EXCLUDE (fee lines) | Same |
114| FIRSTRAND, FNB, FIRST NATIONAL BANK | EXCLUDE (fee lines) | Same |
115| NEDBANK | EXCLUDE (fee lines) | Same |
116| CAPITEC BANK | EXCLUDE (fee lines) | Same |
117| INVESTEC | EXCLUDE (fee lines) | Same |
118| AFRICAN BANK | EXCLUDE (fee lines) | Same |
119| BANK CHARGES, SERVICE FEE, INTEREST | EXCLUDE | Bank fee/interest — exempt |
120 
121### 3.2 South African government and statutory (exclude)
122 
123| Pattern | Treatment | Notes |
124|---|---|---|
125| SARS, SOUTH AFRICAN REVENUE SERVICE | EXCLUDE | Tax payment |
126| UIF, UNEMPLOYMENT INSURANCE FUND | EXCLUDE | Statutory contribution |
127| WORKMEN'S COMP, COIDA | EXCLUDE | Compensation fund |
128| MUNICIPALITY, LOCAL AUTHORITY (rates) | EXCLUDE | Rates and taxes — outside VAT scope |
129| ROAD ACCIDENT FUND, RAF | EXCLUDE | Statutory levy |
130 
131### 3.3 South African utilities (taxable at 15%)
132 
133| Pattern | Treatment | Rate | Notes |
134|---|---|---|---|
135| ESKOM | Input 15% | 15% | National electricity — taxable |
136| CITY POWER (Johannesburg) | Input 15% | 15% | Municipal electricity — taxable |
137| CAPE TOWN ELECTRICITY | Input 15% | 15% | Municipal electricity — taxable |
138| RAND WATER, RAND WATER BOARD | Input 15% | 15% | Water — taxable |
139| CITY OF CAPE TOWN WATER | Input 15% | 15% | Water — taxable |
140| VODACOM | Input 15% | 15% | Mobile/internet — taxable |
141| MTN SOUTH AFRICA | Input 15% | 15% | Mobile — taxable |
142| CELL C | Input 15% | 15% | Mobile — taxable |
143| TELKOM SA | Input 15% | 15% | Fixed-line/internet — taxable |
144| RAIN NETWORK | Input 15% | 15% | Internet — taxable |
145| AFRIHOST | Input 15% | 15% | Internet — taxable |
146 
147### 3.4 Transport and logistics
148 
149| Pattern | Treatment | Rate | Notes |
150|---|---|---|---|
151| SOUTH AFRICAN AIRWAYS, SAA | Check route | 0%/15% | International 0%; domestic 15% |
152| FLYSAFAIR | Input 15% | 15% | Domestic airline — 15% |
153| AIRLINK | Check route | 0%/15% | International 0%; domestic 15% |
154| KULULA.COM | Input 15% | 15% | Domestic — 15% |
155| UBER SOUTH AFRICA | Input 15% | 15% | Ride-hailing — taxable |
156| BOLT SOUTH AFRICA | Input 15% | 15% | Ride-hailing — taxable |
157| DHL SOUTH AFRICA | Input 15% | 15% | Courier — taxable |
158| FEDEX SOUTH AFRICA | Input 15% | 15% | Courier — taxable |
159| DAWN WING | Input 15% | 15% | Courier — taxable |
160| THE COURIER GUY, TCG | Input 15% | 15% | Courier — taxable |
161| ARAMEX SOUTH AFRICA | Input 15% | 15% | Courier — taxable |
162 
163### 3.5 Food and retail
164 
165| Pattern | Treatment | Rate | Notes |
166|---|---|---|---|
167| CHECKERS, SHOPRITE | Input 15%/0% | Mixed | Basic zero-rated food items; non-food 15% |
168| PICK N PAY, PNP | Input 15%/0% | Mixed | Same — zero-rate basic foodstuffs |
169| WOOLWORTHS FOOD | Input 15%/0% | Mixed | Food hall: basic items 0%; prepared/luxury food 15% |
170| SPAR | Input 15%/0% | Mixed | Same |
171| FOOD LOVERS MARKET | Input 15%/0% | Mixed | Same |
172| CLICKS | Input 15% | 15% | Health/beauty retail — 15% |
173| DIS-CHEM | Input 15% (OTC)/0% (prescription exemption) | Mixed | Prescription meds exempt; others 15% |
174| MCDONALD'S SA, STEERS, NANDO'S | Input 15% | 15% | Fast food/restaurant — 15% (no zero-rate for prepared food) |
175 
176**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.
177 
178### 3.6 SaaS — international suppliers (reverse charge / imported services)
179 
180Under 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.
181 
182| Pattern | Treatment | Notes |
183|---|---|---|
184| GOOGLE (Workspace, Ads, Cloud) | Imported services — self-assess 15% | Output and input in same period (net zero for fully taxable) |
185| MICROSOFT (365, Azure) | Imported services — self-assess 15% | Same |
186| META, FACEBOOK ADS | Imported services — self-assess 15% | Same |
187| ZOOM, SLACK | Imported services — self-assess 15% | Same |
188| NOTION, OPENAI, ANTHROPIC | Imported services — self-assess 15% | Same |
189| AWS | Imported services — self-assess 15% | Same |
190| XERO (if billed from NZ) | Imported services — self-assess 15% | Same |
191| SAGE (if billed from UK) | Imported services — self-assess 15% | Same |
192 
193### 3.7 Local SaaS and professional tools (15%)
194 
195| Pattern | Treatment | Rate | Notes |
196|---|---|---|---|
197| XERO (South Africa entity) | Input 15% | 15% | Accounting software |
198| SAGE SOUTH AFRICA | Input 15% | 15% | Accounting/payroll |
199| PASTEL, SAGE PASTEL | Input 15% | 15% | South African accounting |
200| QUICKBOOKS SOUTH AFRICA | Input 15% | 15% | Accounting SaaS |
201 
202### 3.8 Payment processors (exempt)
203 
204| Pattern | Treatment | Notes |
205|---|---|---|
206| PAYFAST (transaction fees) | EXCLUDE | Financial service — exempt |
207| YOCO (transaction fees) | EXCLUDE | Payment processing — exempt |
208| PEACH PAYMENTS (fees) | EXCLUDE | Same |
209| STRIPE (fees) | EXCLUDE | Same |
210 
211### 3.9 Internal transfers and exclusions
212 
213| Pattern | Treatment | Notes |
214|---|---|---|
215| OWN ACCOUNT TRANSFER, INTER-ACCOUNT | EXCLUDE | Internal movement |
216| LOAN, BOND REPAYMENT | EXCLUDE | Loan principal |
217| SALARY, WAGES, PAYROLL | EXCLUDE | Outside VAT scope |
218| DIVIDEND | EXCLUDE | Out of scope |
219| MUNICIPAL RATES, PROPERTY RATES | EXCLUDE | Local government levy — not a supply |
220| ATM, CASH WITHDRAWAL | Tier 2 — ask | Default exclude |
221 
222---
223 
224## Section 4 — Worked examples
225 
226Six classifications from a hypothetical Johannesburg-based IT consultant. Format: FNB (First National Bank) account statement.
227 
228### Example 1 — Domestic B2B revenue (15%)
229 
230**Input line:**
231`15 Apr 2025 CREDIT ABC TECHNOLOGY (PTY) LTD INV-2025-041 R 115,000.00 R 500,000.00`
232 
233**Reasoning:**
234Incoming R 115,000 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. A VAT-compliant tax invoice must be issued per Section 20 of the VAT Act. Report on VAT201 Field 1.
235 
236**Classification:** Output tax 15% — R 15,000. Net supply: R 100,000.
237 
238### Example 2 — Export service (zero-rated)
239 
240**Input line:**
241`22 Apr 2025 CREDIT ACME CORP USA USD 5,000 (R 92,500) R 592,500.00`
242 
243**Reasoning:**
244USD 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.
245 
246**Classification:** Zero-rated export — R 92,500. Output tax: R 0.
247 
248### Example 3 — Electricity (15%, input credit)
249 
250**Input line:**
251`10 Apr 2025 DEBIT ESKOM HOLDINGS SOC April electricity -R 11,500.00 R 388,500.00`
252 
253**Reasoning:**
254Eskom electricity bill. Taxable at 15%. Gross R 11,500. Net = R 10,000 + R 1,500 input tax. Eskom issues VAT-compliant tax invoices — input credit of R 1,500 claimable. Report on Field 10.
255 
256**Classification:** Input tax 15% — R 1,500. Net expense: R 10,000.
257 
258### Example 4 — Zero-rated food (basic foodstuffs)
259 
260**Input line:**
261`12 Apr 2025 DEBIT PICK N PAY Groceries (business kitchen) -R 800.00 R 387,700.00`
262 
263**Reasoning:**
264Grocery 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.
265 
266**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.
267 
268### Example 5 — Imported service — self-assess (Google Ads)
269 
270**Input line:**
271`08 Apr 2025 DEBIT GOOGLE IRELAND LIMITED Google Ads April -R 10,000.00 R 377,700.00`
272 
273**Reasoning:**
274Google Ads billed from Ireland. 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 5). For a fully taxable vendor, simultaneously claim same as input tax R 1,500 (Field 10/11). Net effect: zero. Must be disclosed in the VAT201.
275 
276**Classification:** Imported service — self-assess output R 1,500; input R 1,500. Net: R 0 for fully taxable vendor.
277 
278### Example 6 — Residential rent (exempt, no input tax)
279 
280**Input line:**
281`01 Apr 2025 DEBIT CITY PROP MANAGEMENT April office rent -R 23,000.00 R 354,700.00`
282 
283**Reasoning:**
284Monthly 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.
285 
286**Classification:** Tier 2 — ask. If VAT invoice received from landlord: Input 15% — R 3,000. If no VAT invoice: EXEMPT — no input tax.
287 
288---
289 
290## Section 5 — Tier 1 rules (compressed)
291 
292### 5.1 Standard rate 15%
293 
294Default rate for all taxable supplies. Legislation: VAT Act No. 89 of 1991, Section 7(1)(a).
295 
296### 5.2 Zero rate 0%
297 
298Exports of goods and qualifying services; basic foodstuffs (Schedule 2); illuminating paraffin; petrol and diesel (specific provisions); certain agricultural inputs; prescription medicines; qualifying accommodation. Evidence required for export zero-rating. Legislation: VAT Act Section 11; Schedule 2.
299 
300### 5.3 Exempt supplies
301 
302Financial 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.
303 
304### 5.4 Tax invoice requirements (Section 20)
305 
306For supplies above ZAR 50: 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. For supplies ZAR 50 and below: abridged invoice acceptable.
307 
308### 5.5 Imported services
309 
310Services 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).
311 
312### 5.6 Anti-avoidance — entertainment
313 
314Input 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.
315 
316### 5.7 Motor vehicles
317 
318Input 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.
319 
320### 5.8 Filing deadlines
321 
322| Category | Period | Due date |
323|---|---|---|
324| Monthly vendor (>ZAR 30M/year) | Monthly | Last business day of following month |
325| Bi-monthly vendor (most) | Every 2 months | Last business day of following month |
326| Small vendor (approved) | Quarterly/semi-annual/annual | As approved by SARS |
327 
328### 5.9 Penalties
329 
330| Offence | Penalty |
331|---|---|
332| Late return | ZAR 100–ZAR 16,000 per month late |
333| Late payment | 10% of tax due + interest at prescribed rate |
334| Understatement | 10%–200% of shortfall depending on intent |
335| Fraud | Criminal prosecution |
336 
337---
338 
339## Section 6 — Tier 2 catalogue
340 
341### 6.1 Entertainment — is vendor in the hospitality trade?
342 
343**What it shows:** Restaurant, entertainment, or accommodation expense.
344**What's missing:** Whether the vendor's primary business is hospitality/entertainment (unblocks the input).
345**Conservative default:** BLOCKED — no input tax.
346**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."
347 
348### 6.2 Motor vehicle — is it a "motor car" as defined?
349 
350**What it shows:** Vehicle purchase, lease, or maintenance.
351**What's missing:** Whether the vehicle is a "motor car" (blocked) or a qualifying vehicle.
352**Conservative default:** BLOCKED — no input tax.
353**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."
354 
355### 6.3 Rent — has landlord opted to charge VAT?
356 
357**What it shows:** Monthly rent payment.
358**What's missing:** Whether the landlord is VAT-registered and has charged VAT on the invoice.
359**Conservative default:** No input tax (treat as exempt until VAT invoice confirmed).
360**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."
361 
362### 6.4 Zero-rated basic food vs. standard-rated food
363 
364**What it shows:** Supermarket purchase.
365**What's missing:** Itemised receipt showing which items are basic (zero-rated) vs. standard (15%).
366**Conservative default:** 15% on full amount.
367**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%."
368 
369### 6.5 Imported services — partial exemption interaction
370 
371**What it shows:** Payment for foreign digital services.
372**What's missing:** Whether the vendor has any exempt income that blocks full input tax recovery on imported services.
373**Conservative default:** Self-assess output and input at 15% (net zero for fully taxable).
374**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."
375 
376---
377 
378## Section 7 — Excel working paper template
379 
380```
381SOUTH AFRICA VAT201 WORKING PAPER
382Tax Period: ____________ VAT Registration No.: ____________
383 
384A. OUTPUT TAX
385 A1. Standard-rated supplies at 15% (net) ___________
386 A2. Output tax 15% (A1 × 15/115 of gross OR A1 × 15%) ___
387 A3. Zero-rated supplies (net) ___________
388 A4. Exempt supplies (net) ___________
389 A5. Imported services self-assessed output ___________
390 A6. Total output tax (A2 + A5) ___________
391 
392B. INPUT TAX
393 B1. Standard-rated purchases (net) ___________
394 B2. Input tax at 15% (B1 × 15/115) ___________
395 B3. Import VAT (SAD500) ___________
396 B4. Imported services input (self-assessed) ___________
397 B5. Blocked input (entertainment, motor cars) ___________
398 B6. Net input tax (B2+B3+B4 − B5) ___________
399 
400C. NET VAT
401 C1. Net VAT (A6 − B6) ___________
402 C2. Prior period credit ___________
403 C3. Net payable / (refund) (C1 − C2) ___________
404 
405REVIEWER FLAGS:
406 [ ] Tax invoices (Section 20) confirmed for all input claims?
407 [ ] Entertainment and motor car inputs correctly blocked?
408 [ ] Export evidence held for zero-rated supplies?
409 [ ] Imported services self-assessed (output = input)?
410 [ ] Basic foodstuffs correctly zero-rated?
411 [ ] Rent — landlord VAT invoice confirmed?
412```
413 
414---
415 
416## Section 8 — Bank statement reading guide
417 
418### Common South African bank statement formats
419 
420| Bank | Key columns | Date format | Amount |
421|---|---|---|---|
422| FNB | Date, Description, Debit, Credit, Balance | DD Mon YYYY | ZAR with 2 decimals |
423| Standard Bank | Date, Narrative, Debit, Credit, Balance | DD MMM YYYY | ZAR |
424| ABSA | Date, Description, Amount, Balance | DD/MM/YYYY | ZAR |
425| Nedbank | Date, Details, Debit, Credit, Balance | DD/MM/YYYY | ZAR |
426| Capitec | Date, Description, Debit, Credit, Balance | YYYY-MM-DD | ZAR |
427 
428### Key South African banking terms
429 
430| Term | Meaning | Classification hint |
431|---|---|---|
432| CREDIT | Incoming funds | Potential revenue |
433| DEBIT | Outgoing payment | Potential expense |
434| ATM WITHDRAWAL | Cash withdrawal | Tier 2 — ask |
435| BANK CHARGES | Bank fee | Exempt |
436| INTEREST EARNED | Interest received | Exempt |
437| BALANCE | Running balance | Ignore |
438| SALARY / WAGES | Payroll | Out of VAT scope |
439| EFT / EFT DEBIT | Electronic fund transfer | Check direction |
440 
441---
442 
443## Section 9 — Onboarding fallback
444 
445```
446SOUTH AFRICA VAT ONBOARDING — MINIMUM QUESTIONS
4471. VAT registration number (10 digits starting with 4)?
4482. Tax period covered by this bank statement?
4493. Filing frequency: monthly, bi-monthly, or other?
4504. Do you have any exports (zero-rated)? Evidence held?
4515. Do you have exempt income (financial services, residential rent)?
4526. Does the business provide entertainment as its primary service?
453 (Determines whether entertainment input tax is blocked)
4547. Are any vehicles used exclusively for business goods transport?
4558. Imported services (Google, Microsoft, etc.) — confirm for self-assessment
4569. Prior period credit/refund amount to carry forward?
457```
458 
459---
460 
461## Section 10 — Reference material
462 
463### Key legislation
464 
465| Topic | Reference |
466|---|---|
467| VAT Act | Value-Added Tax Act No. 89 of 1991 |
468| Standard rate | Section 7(1)(a) |
469| Zero rate | Section 11; Schedule 2 |
470| Exemptions | Section 12 |
471| Input tax | Section 16 |
472| Blocked input — entertainment | Section 17(2)(a) |
473| Blocked input — motor cars | Section 17(2)(c) |
474| Tax invoice | Section 20 |
475| Imported services | Section 7(1)(c) |
476| Penalties | Tax Administration Act No. 28 of 2011 |
477 
478### Known gaps
479 
480- Partial exemption (Section 17(1)) apportionment — escalate
481- Property option to tax — escalate
482- Financial services VAT — escalate
483- Capital goods adjustments (Section 18A) — escalate
484 
485### Self-check
486 
487- [ ] All tax invoices Section 20 compliant
488- [ ] Entertainment and motor car inputs blocked
489- [ ] Export zero-rating supported by evidence
490- [ ] Imported services self-assessed
491- [ ] Basic foodstuffs correctly split from 15% items
492- [ ] Prior period credit carried forward
493 
494### Changelog
495 
496| Version | Date | Change |
497|---|---|---|
498| 1.0 | 2024 | Initial |
499| 2.0 | April 2026 | v2.0 rewrite: pattern library, worked examples, no inline tier tags |
500 
501---
502 
503## Prohibitions
504 
505- NEVER allow input tax on entertainment expenses unless vendor's primary business is hospitality
506- NEVER allow input tax on motor cars (passenger vehicles) used for mixed purposes
507- NEVER zero-rate exports without evidence (customs documents, foreign payment records)
508- NEVER allow input tax from a non-VAT-registered supplier
509- NEVER self-assess imported services without recording both output and input in the same period
510- NEVER present calculations as definitive — direct to a CA(SA) or registered tax practitioner
511 
512---
513 
514## Disclaimer
515 
516This skill and its outputs are for informational purposes only and do not constitute advice. All outputs must be reviewed by a qualified professional before filing. The most up-to-date version is maintained at openaccountants.com.
517 

Run this skill, then get an accountant to check it

After running the full skill pack in Claude, sign up and upload your worksheet. We'll connect you with a trusted accountant in our network who can review your numbers before you file.

Sign up to submit a review

Quality

Q2: Research-verified

Deep research against tax authority sources. Not yet tested on real data.

Needs real client data + practitioner sign-off to reach Q1.

Accountant Review

Unverified
0/48

About

Use this skill whenever asked to prepare, review, or classify transactions for a South Africa VAT return (VAT201), classify transactions for South African VAT purposes, or advise on VAT registration and filing in South Africa. Trigger on phrases like "South Africa VAT", "VAT201", "SARS VAT", "input tax South Africa", "output tax South Africa", "South African Revenue Service VAT", or any SA VAT request. ALWAYS read this skill before touching any South Africa VAT work.

ZAty-2025

ZA skill: