VAT & PAYE Guide Estimated reading: 1 minute 30 views Summary: Master VAT (15%) and PAYE compliance in South Africa. Complete guide covering registration, calculations, deadlines, UIF contributions and compliance management. VAT & PAYE Complete Guide – South Africa 2025/26 Master VAT and PAYE compliance with Taxfy’s comprehensive guide for businesses, tax practitioners, and payroll professionals. VAT Overview VAT System Basics Standard Rate: 15% Input VAT: VAT paid on business purchases Output VAT: VAT charged on business sales Net VAT: Output VAT minus Input VAT Registration Thresholds Mandatory: R1,000,000 annual turnover Voluntary: R50,000 annual turnover Registration Deadline: 21 days from threshold breach Return Frequencies Monthly: > R30 million turnover Bi-Monthly: R1.5m – R30m turnover Quarterly: < R1.5m (special permission) PAYE System Employer Obligations Registration: Before first salary payment Monthly Returns: EMP201 by 7th of month Annual Certificates: IRP5 by 31 March Reconciliation: Annual return by 31 May 2025/26 Tax Rates Annual Income Tax Rate R0 – R237,100 18% R237,101 – R370,500 26% R370,501 – R512,800 31% R512,801 – R673,000 36% R673,001+ 39-45% Tax Rebates (Annual) Primary Rebate: R17,235 (all taxpayers) Secondary Rebate: R9,444 (65+ years) Tertiary Rebate: R3,145 (75+ years) UIF Contributions Employee: 1% of gross remuneration Employer: 1% of gross remuneration Monthly Maximum: R177.12 per person Annual Maximum: R2,125.44 per person Medical Aid Tax Credits (Monthly) Main Member: R364 First Dependent: R364 Additional Dependents: R246 each Ready to master VAT & PAYE compliance? Start your professional trial
