South Africa Reverse VAT Calculator.

South Africa's Value Added Tax (VAT) was introduced in 1991, replacing the General Sales Tax (GST). The standard VAT rate is 15%, raised from 14% in April 2018 — the first increase in over 25 years. South Africa's VAT is administered by the South African Revenue Service (SARS) and applies to most goods and services consumed in South Africa.

South Africa's VAT system provides for zero-rated supplies (taxed at 0%, allowing businesses to still claim input tax credits) for essential goods and services. The zero-rated items include: 19 specific basic food items including brown bread, milk, dried beans, rice, mealie meal (maize meal), samp, edible legumes and pulses, vegetables, fruit, vegetable and fruit juices, eggs, cooking oil, tea, and a few other staples. This limited zero-rating list was designed to reduce the VAT burden on low-income households who spend a larger share of their income on food. Exports are also zero-rated under standard international VAT principles.

VAT registration in South Africa is required when taxable supplies exceed R1 million in a 12-month period. Voluntary registration is permitted for businesses with supplies exceeding R50,000. SARS has been investing heavily in digital administration, and e-filing of VAT returns is standard practice for registered vendors.

South Africa has made significant strides in VAT compliance and administration but continues to face challenges with VAT fraud, particularly carousel fraud in the export sector and fraudulent refund claims. SARS has implemented various risk-based audit approaches and verification systems to counter these issues.

For tourists visiting South Africa, a tourist VAT refund scheme operates at major airports (OR Tambo in Johannesburg, Cape Town International, and King Shaka in Durban). Non-resident visitors can claim back VAT on goods purchased in South Africa worth R250 or more per tax invoice, carried in personal luggage at departure.