Currently VAT is 14%.

REGISTRATION
If your annual gross income is in excess of R150,000 then you are compelled to register as a vendor for VAT purposes.  If your annual gross income is less than R150,000 then you need not register, but you can register if you so wish.  However, as you will be paying VAT on all goods that you purchase, it may be in your interest to register as a vendor even if your annual gross income is less than R150,000.

DAILY RATE
The daily rate that you charge your clients is subject to VAT, which is not refundable to the client on leaving the country.  If you operate in any of the neighbouring countries such as Botswana then the daily rate for that part of the safari is not subject to VAT.  The services that you render to a client which are subject to VAT would include the following:
 1. professional services:  professional hunter, tracker, etc.
 2. accommodation, meals, laundry and refreshment

TROPHIES
For VAT purposes trophies for export will be zero-rated:

 CONSIGNMENT TO TAXIDERMIST
If the trophies are consigned to a taxidermist within six months after they were invoiced to the client.  The taxidermist must in turn ship the trophies to the client within eighteen months after receipt.  (The Ruling does contain an extension clause as well).  The professional hunter must retain a copy from his taxidermy register indicating the date, name, address, passport number and country, description of trophies, name and address of taxidermist, and nature of the taxidermy instructions.  The taxidermist must within 30 days provide a copy of his order to the professional hunter.  Within the eighteen-month period, the professional hunter must obtain documentary proof that the trophies have been consigned – copies of DA550 forms and airwaybills will suffice.

DIRECT SHIPMENT BY PROFESSIONAL HUNTER AFTER RAW PREPARATION
If the professional hunter does not consign the trophies to a taxidermist, but handles the raw preparation himself before exporting direct to the clients, the trophies must be consigned to the client within six months.  Please note that raw preparation is considered to be a service and as such is subject to VAT at the full rate.  Documentation required is a DA550 (bill of export), the airwaybill, and F178 (exchange control) and Form E (proof of payment from export country).

TAXIDERMISTS
Regarding taxidermists, as of 2 December 1993, 70% of their work on the preservation/mounting of trophies for export will be zero rated (manufacture of final product) and 30% (classified as services) will be subject to VAT at the full rate.  Raw preparation is also considered a service and as such is subject to VAT at the full rate.  For documentation, taxidermists must be in possession of copies of DA550s (bill of export), airwaybills, F178 (exchange control declaration) and Form E (proof of payment from export country)

TROPHIES – WOUNDED AND LOST / PACKAGE ANIMALS NOT TAKEN
If an animal is wounded and lost or if an animal included in a package deal is not hunted or is wounded and lost, then there is no trophy that can be exported.  The zero rate therefore cannot apply to these trophy charges.  VAT must be levied at the standard rate on these trophy charges.
 
COMMISSIONS
Commissions deducted from deposits collected by your agents in any foreign country falls outside the ambit of the Act and are therefore not subject to VAT.  Commissions paid to you by foreign agents are not subject to VAT.  They are zero-rated.  Commissions received and paid by you in South Africa are subject to VAT.

PRICE LISTS
The price quoted by you in your price list must include VAT where applicable.  Any prices advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax, and the vendor shall in his advertisement or quotation state that the price include tax, unless the total amount of the tax chargeable under section (7)(1)(1a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor.

INPUT VAT
You will have to pay the following input VAT but this can claimed from any output VAT that you pay:
• Telephone, fax, telex, and express mail delivery
• Printed brochures and advertising material
• Local traveling expenses
• Camp supplies and hunting equipment
• Motor vehicle running costs
• Professional services, ie, accountants, attorneys, etc.

TAX INVOICES
Where vendors prefer to issue tax invoices in foreign currency, they are now required to also state the consideration and the tax in South African currency.  The VAT liability is fixed at the time of supply.  Should the amount eventually paid, differ from the amount of consideration reflected on the tax invoice due to currency fluctuation, this difference will not affect the VAT charged on the supply.  Input tax may be deducted and output tax has to be accounted for in accordance with the tax invoice issued.

DOUBLE CAB VEHICLES
As the double cab vehicle was constructed mainly for the carriage of passengers, VAT vendors who purchase a double cab will not be allowed a VAT input deduction.