What is VAT?
Wondering where this VAT charge came from? Let's take a closer look at VAT.
VAT stands for Value Added Tax, which is a tax charged on most goods and services in South Africa. It is currently set at 15% and is collected by businesses on behalf of the South African government.
Why we pay VAT?
As of September 1991, the South African government introduced Value Added Tax (VAT) for all businesses.
The government uses VAT to raise revenue. Businesses act as vendors, collecting VAT from their customers for goods and services rendered on the government's behalf.
iKhokha transaction rates and VAT?
iKhokha charges a standard rate of 2.75% (excluding VAT) for every transaction. However, once you start trading and add the standard VAT rate (0.4%) to your transaction, your transaction rate will sit at approximately 3.16% per transaction.
Should you process over R40 000 worth of card transactions per month, your transaction rate will decrease.
Think you qualify for a custom rate?
Email customrates@ikhokha.com to apply for a rate tailored to your business.
