South Africa VAT
VAT was born as a tax for business enterprise in South Africa in 1991. All taxable supplies of goods or services are liable to VAT – with some exemptions
Should you register for South African VAT
For foreign companies making taxable supplies in South Africa, there may be a statutory obligation to register for VAT.
Typical situations requiring a South Africa VAT registration include:
- Where goods are delivered within South Africa;
- If the foreign trader imports, installs or assembles goods in South Africa;
- Export of goods from South Africa;
- Supply of services where the place of supply is South Africa
- Organising live events and conferences
South Africa VAT registration threshold
There is an annual VAT registration threshold of ZAR 1,000,000 per annum. It is not compulsory to register if the annual sales turnover is below this amount.
South African Thresholds
South African Fiscal representative
A foreign company may register for VAT without the requirement to form a local company; however they must appoint a South African VAT fiscal representative. The representative and company are jointly liable for the reporting and payment of VAT to the South African authorities.
In addition to appointing a Fiscal Rep, the company would require a South African bank account and also a South African registered address.
Other resources
This guide covers the essential steps ecommerce sellers need to take now that the UK has left the EU Customs Union and VAT regime to keep their cross-border sales going, avoid extra tax costs and frustrated customers.
Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.
