What are the different VAT rates and VAT treatment?
The VAT rates and VAT treatments are set by the South African Revenue Service (SARS). Businesses can configure payment pages and associate VAT rules based on the goods and services that they provide.
There are three kinds of VAT treatments:
- VAT Registered - A VAT-registered customer who resides in South Africa.
- Non-VAT Registered - Customers whose business location is in South Africa but are not VAT registered.
- Overseas - Customers who reside outside South Africa.
These are the VAT rates that are administered by the SARS and available in Zoho Checkout:
| VAT Name | Rate% | Description |
|---|---|---|
| Standard Rate | 15% | Most of the goods and services that are included in transactions after April, 2018 fall under this tax rate. |
| Zero Rate | 0% | Goods that are agricultural supplies or residential lettings, and services such as road and rail transport, financial services, money lending, retirement and medical benefits, and international support are zero-rated. |
| Exempt | NIL | Non-fee related financial services, educational services provided by an approved educational institution, and residential rental accommodation are exempt from tax. |
| Change in use (Non-taxable supplies) | 15% | Purchasing a good for business and later using it for personal use. |
| Change in use (Taxable supplies) | 15% | Purchasing a good for personal use and later using it for taxable supplies. |
| Export of second-hand goods | 15% | Purchasing a second-hand good and exporting it later. |
| Supply of accommodation not exceeding 28 days | 15% | When accommodation is provided for 28 or less than 28 days, VAT will be calculated for the total cost. |
| Supply of accommodation exceeding 28 days | 15% | When accommodation is provided for more than 28 days, VAT will be calculated only for 60% of the total cost. |