Money & compliance

VAT at 15%, explained like you're busy

When to register, how VAT shows on an invoice, and the mistakes that cost small businesses money.

The IBIS teamLegacy Live Web05 Jun 20265 min read

VAT feels intimidating until you see the shape of it. In South Africa the standard rate is 15%, and the rules about who must register are clearer than they look.

When you must register

Registration is compulsory once your taxable turnover passes the SARS threshold in any 12-month period. You can register voluntarily earlier if it suits you — for instance, to claim VAT on inputs.

How it shows on an invoice

Show VAT per line item, then the total. A tax invoice also needs your VAT number, the words “tax invoice”, and the buyer's details above a certain value.

The usual mistakes

Forgetting to register on time, charging VAT before you're registered, and missing input VAT you were entitled to claim. All avoidable with a system that tracks the threshold for you.

In IBIS

In IBIS, VAT is calculated per line and your statements keep the running picture — so the registration threshold doesn't sneak up on you.

The IBIS team

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