---
title: "South Africa VAT Settings"
space: "SA Practitioner Guide"
url: "https://product.cohenix.cloud/sa-guide/erpnext-only-track-vat-documents/vat-settings"
updated: "2026-06-14"
---

# South Africa VAT Settings

VAT configuration is per company. You create one **South Africa VAT Settings** record for each VAT-registered company. The form includes two **action buttons** (under the *South Africa* menu) that do most of the heavy lifting — but they have prerequisites, so set those up first.

## Prerequisites (do these first)

1. **Company VAT number.** Capture the company's 10-digit SARS VAT number on the [Company record](../foundation-setup-both-tracks/company-registration) (`VAT Number` / Tax ID). The VAT Settings reads this automatically, validates it is **exactly 10 digits**, and South African VAT numbers normally **start with `4**`. The settings and the company are kept in sync: saving a VAT number on the settings writes it back to the Company, and vice versa.
2. **VAT accounts of type "Tax".** Ensure the company has an **Output VAT** and an **Input VAT** account (account type *Tax*). Load the SA [Chart of Accounts](../foundation-setup-both-tracks/chart-of-accounts) if they don't exist — the account pickers on this form only list Tax-type accounts for the company.
3. **Company country = South Africa.** The company picker only lists South African companies.

> If you run the actions before these are in place, you'll get validation messages (e.g. "VAT Registration Number must be 10 digits", or templates mapped to a missing account). Set the prerequisites, then run the actions.

## 1. Open and complete the core fields

![](/files/image.webp)

Go to **South Africa VAT Settings → New** (or open it from the **SA VAT** workspace). Several fields default automatically:


| Field                                  | Notes                                                                                                                   |
| -------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| Company                                | Scopes the settings. Defaults to the system default company.                                                            |
| VAT Registration Number                | Auto-pulled from the Company (read/sync). Must be 10 digits.                                                            |
| VAT Vendor Type                        | Defaults to *Standard* if seeded. Sets the filing frequency.                                                            |
| VAT Filing Frequency                   | Defaults from the vendor type (e.g. Bi-Monthly).                                                                        |
| VAT Filing Day                         | Defaults to 25; must be 1–31.                                                                                           |
| Standard VAT Rate                      | Defaults to 15. Also pushed to ERPNext *Accounts Settings*.                                                             |
| Output VAT Account / Input VAT Account | Tax-type accounts for the company.                                                                                      |
| Item Tax Template Account              | Optional; enables item tax template creation. Must be a Tax/Chargeable/Income/Expense account belonging to the company. |


The **VAT Rates** table auto-populates Standard (15%), Zero (0%) and Exempt (0%) rows; blank rows are pruned on save.

## 2. Action: Apply Recommended VAT Setup

The **Apply Recommended VAT Setup** button (South Africa menu) bootstraps the company's VAT configuration in one step. It:

- Creates the full set of **Sales tax templates**: SA Standard Rated Sales 15% (and an "Additional" variant), SA Capital Goods Sales 15%, SA Zero Rated Sales 0%, SA Export Zero Rated Sales 0%, SA Exempt Sales 0% — each named with the company suffix and mapped to the **Output VAT** account.
- Creates the **Purchase tax templates**: SA Capital Purchases 15%, SA Capital Imports 15%, SA Standard Rated Purchases 15%, SA Other Imports 15% — mapped to the **Input VAT** account.
- Maps each template to the matching **VAT201 classification** field on the settings (the classification mapping that drives the VAT201 return).
- Creates **Item Tax Templates** per rate **if** an Item Tax Template Account is set.
- **Tracks the VAT accounts** (output + input) in the settings' VAT Accounts table.
- Saves the settings and reports what was created.

Run this once per company after the prerequisites are in place. It is idempotent — re-running refreshes the templates rather than duplicating them.

## 3. Action: Sync VAT Accounts

The **Sync VAT Accounts** button rebuilds the **tracked VAT accounts** list (the output and input VAT accounts) on the settings and saves. Use it after you change the output/input VAT account, so the VAT201 reporting picks up the correct accounts. (Saving the settings also re-syncs them automatically.)

## 4. Review warnings and the VAT201 classification mapping

After saving, the settings surface **warnings** worth checking:

- VAT registration number not configured, or not starting with `4`.
- Input and Output VAT accounts being the same account.
- Item Tax Template Account not set (item tax templates skipped).
- Registration thresholds: the compulsory threshold is **R2,300,000** and the voluntary threshold **R120,000** (effective 1 April 2026) — confirm the values on the settings match.

Then review the **VAT201 Classification Mapping** fields (which template feeds each VAT201 box). Apply Recommended VAT Setup fills these from the templates it created; adjust them if your template structure differs.

## What happens automatically on save

On every save the settings also: push the standard rate to Accounts Settings, (re)create the legacy "South Africa VAT 15% – Sales/Purchase" templates, refresh item tax templates (if configured), and re-sync the tracked VAT accounts. So once configured, simply saving keeps everything aligned.

## Next

Set up the [Tax Templates & Item VAT Categories](tax-templates-item-categories) — much of which the *Apply Recommended VAT Setup* action will have created for you to review and assign.