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South Africa Tax Information

15% VAT

VAT is 15%. Registration mandatory above R1 million taxable supplies.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in South Africa

VAT number
Company registration
Client details
VAT (15%)
Total in ZAR

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

Cash7 days30 daysEnd of Month

Payment Methods in South Africa

EFTInstant EFTCredit CardCashSnapScan

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in South Africa?

South Africa has 15% VAT. VAT is 15%. Registration mandatory above R1 million taxable supplies.

What payment methods are common for contractors in South Africa?

Common payment methods in South Africa include: EFT, Instant EFT, Credit Card, Cash, SnapScan. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in South Africa?

Your invoice should include: VAT number, Company registration, Client details, VAT (15%). For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is South Africa's VAT rate?

15% on most goods and services. Basic food items are zero-rated.