What this page covers
VAT is charged at a single rate on most goods and services, but the registration threshold more than doubled in 2026, which changed who has to be in the system at all.
| Item | 2026/27 | 2025/26 | Note |
|---|---|---|---|
| Standard rate | 15% | 15% | Unchanged since April 2018 |
| Compulsory registration | R2,300,000 | R1,000,000 | From 1 April 2026 |
| Voluntary registration | R120,000 | R50,000 | Minimum turnover to register by choice |
| Zero rate | 0% | 0% | Exports and listed basic foodstuffs |
| Filing frequency | Two-monthly or monthly | Same | Monthly above R30 million turnover |
| Category | VAT charged | Input VAT claimable | Examples |
|---|---|---|---|
| Standard rated | 15% | Yes | Most goods and services |
| Zero rated | 0% | Yes | Exports, brown bread, maize meal, milk, fuel |
| Exempt | None | No | Financial services, residential rent, public transport |
| Out of scope | None | No | Salaries, dividends |
| Activity | VAT treatment |
|---|---|
| Trading profit on forex or CFDs | A financial service, exempt |
| Brokerage and platform fees | Exempt where the supplier is a financial service |
| A trading education course sold in South Africa | Standard rated if the seller is registered |
| Software and data subscriptions from abroad | Imported services, reverse charge may apply |
| Selling signals or a course as a business | Register once turnover passes R2.3 million |
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Every table on this page as a spreadsheet, with the source and the date it was checked in the header rows.
⬇ Download CSVHow these figures work
The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. Financial services are exempt rather than zero rated, which matters: an exempt supplier cannot claim back the VAT it pays on its own costs.
The threshold increase applies to new applications from 1 April 2026. A business already registered stays registered unless it deregisters.
★ What this means in practice
Turnover for the threshold is the value of taxable supplies over any twelve consecutive months, not a financial year.
✕ Common mistakes
- Financial services are exempt rather than zero rated, which matters: an . Financial services are exempt rather than zero rated, which matters: an exempt supplier cannot claim back the VAT it pays on its own costs.
- The threshold increase applies to new applications from 1 April 2026. The threshold increase applies to new applications from 1 April 2026. A business already registered stays registered unless it deregisters.
- Turnover for the threshold is the value of taxable supplies over any twe. Turnover for the threshold is the value of taxable supplies over any twelve consecutive months, not a financial year.
- Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.
Notes on reading these figures
- Financial services are exempt rather than zero rated, which matters: an exempt supplier cannot claim back the VAT it pays on its own costs.
- The threshold increase applies to new applications from 1 April 2026. A business already registered stays registered unless it deregisters.
- Turnover for the threshold is the value of taxable supplies over any twelve consecutive months, not a financial year.
To put these figures to work, The Securities Transfer Tax Calculator runs the arithmetic on your own numbers; Trading through a company covers the same ground in ordinary language; Company Tax Rates Reference goes into the detail this table only summarises; SARS Income Tax Tables is the related figure worth reading beside it; and Tax on forex trading profits covers what this page leaves out.
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Terms used on this page
Frequently asked questions
Do I pay VAT on trading profits?
No. Financial services are exempt from VAT, so a profit on forex, CFDs or shares carries no VAT. Income tax or CGT still applies.
When must I register for VAT?
Once taxable supplies exceed R2.3 million over any twelve consecutive months. The threshold rose from R1 million on 1 April 2026.
What is the difference between zero rated and exempt?
A zero-rated supplier charges 0% but can still claim back the VAT it pays. An exempt supplier charges nothing and can claim nothing.
Can I register voluntarily?
Yes, once taxable supplies reach R120,000 a year. That threshold also rose in 2026, from R50,000.
Does VAT apply to a trading course I sell?
Yes, if you are registered. Education is not exempt unless provided by an approved institution.
What about software I buy from abroad?
Imported services may attract VAT on a reverse charge basis, where you account for the VAT yourself.