South Africa VAT codes and rates
South Africa charges VAT at 15%, with other rates of 9%. When you create a company in South Africa, Nefin sets up 7 sales and 8 purchase codes, each tied to a box of the VAT201 return. Every invoice and bill line carries one, so the return's totals add themselves up as you work. They fill the VAT201 - Sales (Output Tax) and the VAT201 - Purchases (Input Tax), ready to file every month.
VAT codes from the VAT201 return
Each code is the box or line it fills on the VAT201 return, named in the authority’s own wording. Pick one on an invoice or bill line and the amount lands in that box.
| Code | What it covers | Rate |
|---|---|---|
| 1 | Standard rate 15% (Field 1)Default | 15% |
| 1A | Standard rate 15% - capital goods/services (Field 1A) | 15% |
| 2 | Zero rate, excl. exported goods (Field 2) | 0% |
| 2A | Zero rate - exported goods (Field 2A) | 0% |
| 3 | Exempt and non-supplies (Field 3) | 0% |
| 5 | Accommodation > 28 days, 15% on 60% (Field 5) | 9% |
| 7 | Accommodation <= 28 days 15% (Field 7) | 15% |
| Code | What it covers | Rate |
|---|---|---|
| 15 | Other goods/services 15% (Field 15)Default | 15% |
| 14 | Capital goods/services 15% (Field 14) | 15% |
| 14A | Capital goods imported 15% (Field 14A) | 15% |
| 15A | Other goods imported 15% (Field 15A) | 15% |
| 12-IMP | Imported services for non-taxable use (Field 12) | 0% |
| NR-ZR | Zero-rated purchases (no VAT201 field) | 0% |
| NR-EX | Exempt purchases (no VAT201 field) | 0% |
| NR-ND | Non-deductible 15%, e.g. entertainment (no field) | 15% |
South Africa VAT books
One row per invoice or bill, one column per return box. Nefin builds both books from the codes above.
Sales book
VAT201 - Sales (Output Tax)
Standard rate
- [1]Field 1 - Standard rate (excl. capital goods and accommodation), net
- [1A]Field 1A - Standard rate (only capital goods and/or services), net
Zero rate and exempt
- [2]Field 2 - Zero rate (excluding goods exported)
- [2A]Field 2A - Zero rate (only exported goods)
- [3]Field 3 - Exempt and non-supplies
Supply of accommodation
- [5]Field 5 - Accommodation exceeding 28 days (VAT excl.)
- [7]Field 7 - Accommodation not exceeding 28 days (VAT excl.)
Totals Nefin calculates
- [1-NET] Field 1 net valueSum of the net amounts in [1]
- [4] Field 4 - Output tax on Field 1Sum of the tax charged in [1]
- [1-INCL] Field 1 as declared (VAT included)Total of [1-NET] + [4]
- [1A-NET] Field 1A net valueSum of the net amounts in [1A]
- [4A] Field 4A - Output tax on Field 1ASum of the tax charged in [1A]
- [1A-INCL] Field 1A as declared (VAT included)Total of [1A-NET] + [4A]
- [6] Field 6 - Field 5 x 60%Net amount × 60%, from [5]
- [7-NET] Field 7 valueSum of the net amounts in [7]
- [8] Field 8 - Fields 6 + 7Total of [6] + [7-NET]
- [9] Field 9 - Output tax on accommodation (Field 8 x 15%)Sum of the tax charged in [5] + [7]
- [13] Field 13 - Total output tax from sales (4 + 4A + 9; add 11 and 12)Total of [4] + [4A] + [9]
Purchase book
VAT201 - Purchases (Input Tax)
Input tax
- [14]Field 14 - Capital goods and/or services supplied to you, net
- [14A]Field 14A - Capital goods imported by you, net
- [15]Field 15 - Other goods and/or services supplied to you, net
- [15A]Field 15A - Other goods imported by you, net
Imported services (output tax)
- [12-IMP]Services imported for non-taxable supplies, value
Not reported on the VAT201
- [NR-ZR]Zero-rated purchases
- [NR-EX]Exempt purchases
- [NR-ND]Purchases with non-deductible VAT
Totals Nefin calculates
- [14-VAT] Field 14 - Input taxSum of the tax charged in [14]
- [14A-VAT] Field 14A - Input taxSum of the tax charged in [14A]
- [15-VAT] Field 15 - Input taxSum of the tax charged in [15]
- [15A-VAT] Field 15A - Input taxSum of the tax charged in [15A]
- [19] Field 19 - Total input tax (14 + 14A + 15 + 15A; add 16-18)Total of [14-VAT] + [14A-VAT] + [15-VAT] + [15A-VAT]
- [12] Field 12 - Output tax on imported services (15%)Net amount × 15%, from [12-IMP]
Source
These codes were transcribed from the tax authority's own form or instructions: SARS GEN-ELEC-04-G01 Guide to completing the VAT201 Return, Rev 11, eff. 12 May 2025 - https://www.sars.gov.za/gen-elec-04-g01-guide-for-completing-the-value-added-tax-vat201-declaration-external-guide.
Frequently asked questions
What is the VAT rate in South Africa?
The standard rate is 15%. Other rates in use: 9%. Zero-rated, exempt and reverse-charge transactions use their own 0% codes.
Which VAT codes does Nefin set up for a company in South Africa?
7 sales codes and 8 purchase codes, each named after the VAT201 return box it fills, for example 1 (Standard rate 15% (Field 1), 15%), 1A (Standard rate 15% - capital goods/services (Field 1A), 15%) and 2 (Zero rate, excl. exported goods (Field 2), 0%).
How often is the VAT201 return filed?
Nefin defaults to monthly filing, the usual period for a small or medium registered business in South Africa. Your tax authority may assign you a different one.
Are these South Africa VAT codes official?
Yes. They were transcribed from the tax authority's own form or filling instructions (SARS GEN-ELEC-04-G01 Guide to completing the VAT201 Return, Rev 11, eff. 12 May 2025 - https://www.sars.gov.za/gen-elec-04-g01-guide-for-completing-the-value-added-tax-vat201-declaration-external-guide).
Does Nefin produce the South Africa VAT books?
Yes. The VAT201 - Sales (Output Tax) lists every invoice and the VAT201 - Purchases (Input Tax) every bill, one row per document with a column for each return box, plus the totals the return asks for.