Wondering where this VAT charge came from? Let's take a closer look at 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.
Why we pay VAT?
At iKhokha, it's our mission to provide our merchants with financial solutions that make business easier while always adhering to the tax laws of South Africa.
As a result, we are bound by law to charge VAT on every transaction. By doing this, we ensure that you remain legally protected and compliant so that you can focus on business operations and growth.
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.
QUICK NOTE: If your monthly card volume exceeds R100 000, you can apply for a low custom rate.
Think you qualify for a custom rate? Email firstname.lastname@example.org to apply for a rate tailored to your business.