Expense rules in South Africa.
All SARS rules: 15% VAT, daily allowance and VAT recovery rules in South Africa.
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1Expense rules & reclaimable VAT
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Business meals | 15% | Not reclaimable | Entertainment expenses |
| Travel meals | 15% | 100% reclaimable | Daily allowance cap |
| Accommodation | 15% | 100% reclaimable | Tax invoice required |
| Fuel | Zero-rated | N/A | Fuel levy not reclaim. |
| Train / flight | 15% | 100% reclaimable | Public transport |
| Taxi | 15% | 100% reclaimable | Receipt required |
| Client gifts | 15% | Not deductible | Entertainment |
| Parking | 15% | 100% reclaimable | Tax invoice |
Daily allowance
SARS 2024 tax-free daily per diem.
Foreign
SARS country table.
Retention
SARS records: 5 years.
2Mileage allowance
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Car (Section 8(1)(b)) | R 4,84/km | Unlimited | SARS reasonable rate |
| Company car | Fringe benefit | — | Section 8(1)(b) fringe |
Standard
SARS 2024 standard rate.
Tax-free portion
80% of travel allowance tax-free if records.
Records
Date, destination, km, business purpose.
3Per diem and travel allowances
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| South Africa — national | R 522 | Actual | R 522 |
| Johannesburg / Cape Town | R 522 | R 2,500 | R 3,022 |
| Foreign — London | R 600 | R 4,000 | R 4,600 |
| Foreign — Mumbai | R 400 | R 2,800 | R 3,200 |
| Foreign — New York | R 800 | R 5,500 | R 6,300 |
Daily allowance
SARS 2024 standard per diem.
Foreign
Published country table.
Conditions
Mission > 1 night away from workplace.
4Foreign VAT recovery
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| South Africa → EU | 13th Directive if eligible | Variable | Direct filing per EU country |
| France | No reciprocity | — | No agreement |
| United Kingdom | Reciprocity | 31 Dec. N+1 | HMRC VAT65A |
| Switzerland | Reciprocity | 30 June N+1 | FTA Form 1222 |
| USA | No recovery | — | Sales tax not recoverable |
| ZA VAT for foreign | Limited tourist refund | On exit | Tourist refund scheme |
Tourist refund
Refund at airport (exit).
No B2B
No general B2B procedure.
Outbound
ZA company recovers EU VAT via 13th Directive.
Industrialize your South Africa expenses with Illizeo.
15% VAT, SARS travel R 4.84/km, daily allowance R 522, multi-currency ZAR↔USD↔EUR↔CHF: all the SARS rules above are natively integrated into Illizeo.
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