## Zoho Invoice — Product, features, payments, integrations, solutions, and help Index Access the complete documentation index at: https://www.zoho.com/za/invoice/llms.txt Use this file to discover all available documentation pages before proceeding. # VAT in South Africa - Overview This section will give you a brief overview about how you can configure VAT in Zoho Invoice. ## Configure VAT in Zoho Invoice You’ll have to configure your VAT settings by enabling VAT and setting up VAT rates in Zoho Invoice to get started. Here’s how: ### Enable VAT Settings Here’s how you can enable VAT settings for your organization: * Go to _Settings_ in the top-right corner and click **VAT**. * Slide the toggle next to _Is your business registered for VAT?_ * Enter the _VAT Registration Number_. * Mark _Enable trade with contacts outside South Africa_ if your business involves international trade. * Enter the **VAT Registered On** date. * Click **Save**. ### VAT Rates Once VAT is enabled, the following tax rates will be added to your organization and will be automatically applied to future transactions: VAT 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 \[0%\] A tax rate of 0% is applied on goods that are agricultural supplies or residential lettings. Services that include road and rail transport, financial services, money lending, retirement and medical benefits, and international support are zero-rated. Exempt Exempt is provided in the following cases: * Non-fee related financial services * Educational services provided by an approved educational institution * Residential rental accommodation * Road and rail public passenger transport Change in use (Non-taxable supplies) \[15%\] Purchasing a good for business, intending for making taxable supplies 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 Purchasing a second-hand good and exporting it later. Supply of accommodation exceeding 28 days \[15%\] When accommodation is provided for more than 28 days, the VAT will be calculated only for 60% of the total cost. Supply of accommodation not exceeding 28 days \[15%\] When accommodation is provided for 28 days or less than 28 days, the VAT will be calculated for the total cost. ### Create a VAT Rate You can create a new VAT rate, for example, the Old Standard Rate \[14%\]. Here’s how: * Select **VAT Rates** under _VAT_. * Click **\+ New VAT** in the top-right corner. * Enter the _Tax Name_ and _Rate_. * Select a _Tax Type_ from the dropdown. * Click **Save**. The new VAT rate will be created and can be applied when you create a transaction. ### Edit a VAT Rate **Note:** You can only edit the VAT rate that you have created. Changes cannot be made to the default VAT rates. Here’s how you can edit a VAT rate: * Hover over the tax rate you’ve created and click the down arrow next to it. * Select **Edit** and make the required changes. * Click **Save**. ### Mark a VAT Rate As Inactive The default taxes that you don’t want to use can be marked as inactive. Here’s how: * Hover over a default tax rate and click the down arrow next to it. * Select **Mark as Inactive**. The VAT rate will be marked as inactive. ### Delete a VAT Rate **Note:** You cannot delete default VAT rates. Here’s how you can delete a VAT rate: * Hover over the tax rate you’ve created and click the down arrow next to it. * Select **Delete**. The VAT rate will be deleted. ## VAT Rules Once you enable VAT for your organization, the following VAT rates will be created automatically: * Standard Rate \[15%\] * Zero Rate \[0%\] * Exempt You can mark any of these tax rates as default. Here’s how: * Select **VAT Rates** under _Advanced Tax Automation_. * Hover over the tax rate that you want to set as default. * Click **Mark as Default**. Now, the tax rate will be set as the default tax rate and will be applied automatically when you create a transaction unless the item is associated with a different VAT rule. ## VAT Treatment In Zoho Invoice, you can create VAT-compliant transactions once VAT has been enabled. To do this, you can associate a VAT treatment to your customers based on which VAT will be applied to their transactions. Here’s how you can associate a VAT Treatment: * Go to **Customers** from the left sidebar. * Click **+New** in the top right corner. * Enter the necessary details. * Select the applicable VAT treatment from the dropdown next to _VAT Treatment_. * Click **Save**. VAT Treatment Description VAT Rate VAT Registered The customers whose business location is in South Africa and are registered with SARS to charge VAT on their sales. * Standard Rate (15%) * Zero Rate (0%) * Exempt Non VAT Registered Non VAT registered customers are those whose business location is in South Africa but are not VAT registered. * Standard Rate (15%) * Zero Rate (0%) * Exempt Overseas Overseas is a type of VAT treatment applicable for customers who are outside South Africa. * Zero Rate (0%) ## VAT Summary Report This report provides a comprehensive overview of the Input VAT and Output VAT over a specific period. Here’s how you can generate a VAT summary report: * Go to the **Reports** module on the left sidebar. * Click **VAT Summary** under _VAT_. * Select the **Date Range** next to _Filters_. * Click **Run Report**. Now, the VAT summary report will be generated. This report helps to determine the net VAT payable to or refundable by the South African Revenue Service.