VAT in South Africa - Registration Requirements

VAT in South Africa is an indirect consumption tax for which a pre-determined registration threshold is in place.

Below, our team of lawyers in South Africa answers several common questions about this tax and can assist clients who exceed the threshold and need to register.

We are a full-service law firm that offers solutions for local and foreign investors. We provide legal guidance and representation across many areas of law, and we also specialize in taxation matters and corporate tax laws.

If you need more information than the data presented herein, please do not hesitate to reach out to us for personalized assistance in 2026.

How can a foreign company register for VAT in South Africa?

Compulsory VAT registration applies in the case of all companies, including foreign entities, and foreign entities that provide electronic services to South African customers, when they exceed the prescribed value of taxable supplies of R2.3 million in a 12-month period (R1 million until 31 March 2026).

Quick Facts
VAT registration services	Yes
Standard rate	15%
Lower rates	0%
Who needs VAT registration	– Local companies making supplies of more than ZAR 2.3 million per year (from 1 April 2026). – Non-resident companies and foreign suppliers of electronic services to SA customers above the same threshold.
Time frame for registration	Approximately 1 week
VAT for real estate transactions	15%
Exemptions available	Educational services, residential rental accommodation, public road and rail transport; Some services are zero-rated (basic food items, exports, international transport services, etc.)
Period for filing	Generally every two months; monthly return submissions are possible for some businesses.
VAT returns support	Upon request.
VAT refund	Payable by the SA authorities when the vendor makes an overpayment or when the total VAT amount charged to the vendor on the acquisition of goods exceeds the VAT charged on the supply of goods by the vendor for a certain tax period.
Local tax agent required	Advisable
Who collects the VAT	The South African Revenue Service
Documents for VAT registration	Company documents, information on the business activity code, information on the accounting basis and the tax period, banking details, etc.
VAT number format	A 10-digit number that starts with 4
VAT de-registration situations	Possible when the company makes a request in writing, as well as in other situations, as decided by the Commissioner.

Foreign companies can perform the VAT registration phase with the help of an intermediary, an appointed party who will act on the foreign company’s behalf.

VAT registration in South Africa in 2026 also applies to foreign electronic service entities when the total value of their supplies exceeds the threshold within a 12-month period.

The following steps are relevant for the VAT registration of foreign companies in South Africa:

fill in the VAT application form;
sign the form and attach the supporting documents;
send the application online and wait for its processing.

The Commissioner for the South African Revenue Service evaluates the VAT registration application and may when deemed necessary, ask for additional documents or clarifications.

Once the evaluation is completed, the Commissioner will set forth the date from which the foreign company shall start charging VAT at the standard rate (or as it applies in its case, according to the types of services).

What is the VAT registration process for resident companies?

Locally registered companies are subject to the VAT registration threshold also mentioned above.

A South African company will register for VAT when it carries our VAT-taxable supplies and:

the value of these taxable supplies made in a 12-month period (consecutive months) exceeds or is likely to exceed R2.3 million (R1 million until 31 March 2026); or
when the company has entered into a services agreement for which the value of the taxable supplies will exceed the

The registration process also relies on filling out the electronic VAT registration form, as well as preparing additional documents attesting to the company’s registration and business license.

Our team of lawyers can provide assistance during the process of VAT registration in South Africa in 2026.

Reach out to us for details, as well as assistance throughout all the other company formation stages.

VAT and other tax matters are important issues for all investors who open a company in South Africa. Our team assists entrepreneurs from the very beginning, as early as choosing the suitable business form for their future activities. You can rely on our assistance not only for taxation compliance (including the VAT), but also for other corporate and business compliance issues.

What are the main rates for VAT in South Africa?

The standard value-added tax rate in South Africa is 15%, with certain types of transactions being rated 0% or exempt.

Examples of exempt supplies include the following: financial services (life insurance, the services offered by some benefits funds, buying and selling cryptocurrency), and educational services offered by recognized educational institutions (schools, technical colleges, and universities in South Africa).

Upon request, our tax attorney in South Africa can give you details about the rates of other applicable taxes, such as:

the 27% corporate income tax rate;
the 1% of the gross income social security contribution on the part of the employer and the 1% payroll tax (as well as other taxes for employers);
other taxes such as the real property tax or the 0.25% securities transfer tax, among others.

What are the general VAT reporting requirements?

Companies are expected to observe the following requirements:

value-added tax returns are submitted once every 2 months in most cases;
companies with an annual turnover of more than ZAR 30 million will submit monthly returns;
the return is submitted 25 days following the end of the tax period;
when the return is submitted, the payment is made in full;
companies can also file the returns and make the payments electronically and in this case, they will pay the value-added tax on the last business day of the month following the end of the tax period.

Our accountants in South Africa can answer more detailed questions upon request.

Investors in South Africa who are interested in the taxation of their business can also reach out to our team specializing in South African immigration. We can help them apply for a residence permit that will allow them to remain in the country and manage their business. Together with our team, investors will be able to prepare the needed documents, as well as take into account the conditions the business itself needs to satisfy in order to be considered eligible.

Our tax experts can give you more information upon request and can help you assess the impact of the new tax changes on your company.

Investments in South Africa

The South African Reserve Bank issues quarterly reports on the country’s economy. For the quarter ending in December 2025, the reports indicate that investor were more confident in the domestic economy. Data summarized by our team shows that:

The country maintains a positive net international investment position, which grew to R2,475 billion at the end of June 2025;
The market value of foreign assets increased more than that of foreign liabilities;
The increase in foreign assets was mainly driven by highest direct investment assets, but also portfolio investment assets;
Merchandise exports rose in the third quarter of 2025 and this was mainly due to an increased export of mining and agricultural products.

If you are not a business owner but are interested in the ways in which you can relocate to the country, our team can also answer questions about the other available types of visas. Remaining in the country for temporary purposes is possible once the applicant is accepted for his or her particular purpose of stay. We also assist those who wish to apply for South African permanent residence.

Contact our law firm in South Africa for more information about tax matters in 2026. Our team of experts in company formation in South Africa can also help you open a company.