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Economic Context

Q: What is the current SARB repo rate in South Africa?

The SARB (South African Reserve Bank) repo rate is 6.75% as at June 2026, effective since 20 November 2025. The Monetary Policy Committee held the rate unchanged at 6.75% at the March 2026 MPC meeting. The prime lending rate is repo plus 3.5 percentage points, currently 10.25%. SARB revised its inflation target in 2025 from a 3%–6% band to a 3% point target with a ±1% tolerance band.

Q: What is the VAT rate in South Africa in 2026?

The standard VAT rate in South Africa is 15%, effective since 1 April 2018. The compulsory VAT registration threshold was raised from R1,000,000 to R2,300,000 in the February 2026 Budget under the VAT Act 89/1991. Voluntary registration is possible from R120,000 in taxable supplies. Most businesses file bi-monthly VAT returns; businesses with taxable supplies above R30,000,000 per year must file monthly.

Q: What is the VAT registration threshold in South Africa in 2026?

The compulsory VAT registration threshold in South Africa is R2,300,000 in taxable supplies per 12-month period, effective from Budget 2026. This was more than doubled from the previous threshold of R1,000,000. A business must register for VAT within 21 business days of exceeding this threshold. Voluntary registration is permitted from R120,000 (also raised in Budget 2026 from R50,000).

Q: What is the current South African inflation rate?

South Africa's headline CPI inflation as at May 2026 is approximately 3.0%, within the SARB's revised 3% point target (±1% tolerance band). The SARB revised its inflation target in 2025 from the previous 3%–6% range to this tighter 3% point target, signalling a more hawkish monetary policy stance. Inflation data is published monthly by Statistics South Africa (StatsSA) and is a key input into the SARB's Monetary Policy Committee decisions.

Q: What is the prime lending rate in South Africa?

The prime lending rate in South Africa is 10.25% as at June 2026. Prime is calculated as the SARB repo rate plus 3.5 percentage points — a longstanding convention of the South African banking sector. When the repo rate changes at an MPC meeting, the prime rate adjusts simultaneously. All variable-rate home loans, vehicle finance, and personal loans in South Africa are typically priced at prime plus or minus a margin.

The foundation layer beneath every financial calculation. Live ZAR exchange rates, current SARB monetary policy rates, CPI inflation data, VAT calculations, and South African public holidays — five tools, two live APIs, and a clearly labelled data provenance on every response.

SARB Monetary PolicyVAT Act 89/1991StatsSA CPIFrankfurter API

6.75%

Repo rate

Effective 20 Nov 2025 · MPC held Mar 2026

10.25%

Prime lending rate

Repo + 3.5pp convention

15%

VAT rate

Effective 1 April 2018

R2.3M

VAT reg. threshold

Budget 2026 — raised from R1M

SARB MONETARY POLICY

How the SARB repo rate and prime rate work in South Africa

The South African Reserve Bank (SARB) sets the repo rate — the rate at which it lends to commercial banks — through its Monetary Policy Committee (MPC). The MPC meets six times per year, and changes to the repo rate take effect on the day of the announcement. The repo rate is the single most important interest rate in the South African financial system because virtually every other lending rate flows from it.

The prime lending rate is set by commercial banks at repo plus 3.5 percentage points — a longstanding convention, not a statutory requirement. When the repo rate changes, prime changes simultaneously. The current prime rate of 10.25% (repo 6.75% + 3.5%) is the reference rate for variable-rate home loans, vehicle finance, overdrafts, and personal loans across South Africa.

In 2025, the SARB revised its inflation targetfrom a 3%–6% band to a 3% point target with a ±1% tolerance band. This signals a more hawkish monetary policy stance — the SARB is explicitly targeting lower inflation than the mid-point of the old band (4.5%), which has implications for interest rate expectations over the medium term.

The official interest rate — used for fringe benefit tax on employer loans and Section 7C deemed donations — is repo plus 1%. At the current repo of 6.75%, the official rate is 7.75%. This rate matters in estate planning for trust loans and in employee benefit structuring.

CURRENT RATES

As at June 2026 · Updated post-MPC

6.75%

SARB repo rate

Effective 20 Nov 2025

10.25%

Prime lending rate

Repo + 3.5pp

7.75%

Official rate (fringe benefits)

Repo + 1% · ITA s7C

10.25%

SARS late payment interest

Effective 2 Mar 2026

6.25%

SARS overpayment refund rate

Effective 2 Mar 2026

Estate duty unpaid interest

s10(1) Estate Duty Act

SARB inflation target

Revised 2025 · ±1% band

~3.0%

Headline CPI (approx.)

StatsSA · May 2026

15%

Standard VAT rate

Effective 1 Apr 2018

R2,300,000

VAT registration threshold

Budget 2026

R120,000

Voluntary VAT reg. threshold

Budget 2026

VAT IN SOUTH AFRICA

VAT Act 89 of 1991 — key thresholds and rules for 2026

South Africa's value-added tax (VAT) is governed by the VAT Act 89 of 1991 and levied at a standard rate of 15%, unchanged since 1 April 2018. VAT is a consumption tax — ultimately borne by the end consumer — collected by VAT vendors (registered businesses) on behalf of SARS. Vendors charge output VAT on supplies and claim input VAT credits on purchases, remitting the net difference to SARS.

The compulsory registration threshold was more than doubled in Budget 2026 — from R1,000,000 to R2,300,000 in taxable supplies per 12-month period. This is a significant change that removed the VAT compliance burden from many small businesses. A business that was previously required to register at R1,000,000 may now choose to deregister if its turnover is below the new threshold.

Zero-rated supplies (taxed at 0%) include basic food items (brown bread, maize meal, rice, milk, eggs, and others), exports, and certain financial services. Zero-rating means the supply is still a VAT transaction — the vendor can still claim input VAT credits — but no output VAT is charged to the customer.

Exempt supplies are outside the VAT system entirely — no output VAT charged and no input VAT claims. Residential rentals, certain financial services, and public transport are examples of exempt supplies.

VAT thresholds and rates — 2026/27

Item	Value	Notes	Source
Standard VAT rate	15%	Unchanged since 1 April 2018	VAT Act s7
Compulsory registration threshold	R2,300,000	Raised from R1,000,000 — Budget 2026	VAT Act s23
Voluntary registration minimum	R120,000	Raised from R50,000 — Budget 2026	VAT Act s23
Monthly filing threshold	> R30,000,000	Taxable supplies per year	VAT Act s27
Bi-monthly filing (default)	< R30,000,000	Standard for most businesses	VAT Act s27
Previous compulsory threshold	R1,000,000	Pre-Budget 2026 — for reference	Historical

How the data works — live vs maintained

🟢

Live API data

· Exchange rates (Frankfurter API)
· Public holidays (Nager Date API)

15-minute cache

Fetched live on every request. Falls back to static data if API is unavailable. Every response includes a data_source field identifying the source.

🔵

Maintained static data

· SARB repo rate and prime rate
· CPI inflation (StatsSA)
· VAT rate and thresholds

Updated post-MPC / post-Budget

LOW DISCLAIMER

All SA public holidays for any year. Weekend adjustments. Deadline calculation context.

Public Holidays Act 36/1994

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FREQUENTLY ASKED QUESTIONS

Common questions about SA economic rates and VAT

What is the current SARB repo rate in South Africa?

The SARB repo rate is 6.75% as at June 2026, effective since 20 November 2025. The MPC held the rate unchanged at the March 2026 meeting. The prime lending rate is 10.25% (repo + 3.5 percentage points). SARB revised its inflation target in 2025 to a 3% point target with ±1% tolerance, signalling tighter monetary policy over the medium term.

What is the VAT rate in South Africa in 2026?

The standard VAT rate is 15%, unchanged since 1 April 2018. The compulsory registration threshold was raised from R1,000,000 to R2,300,000 in Budget 2026 — more than doubling the threshold and relieving many small businesses from mandatory VAT registration. Voluntary registration is available from R120,000 in taxable supplies.

What is the VAT registration threshold in South Africa in 2026?

Businesses with taxable supplies exceeding R2,300,000 over any 12-month period must register for VAT compulsorily. This threshold was raised from R1,000,000 in the February 2026 Budget. Voluntary registration is available from R120,000. Once registered, monthly filing is required above R30,000,000 in supplies; bi-monthly is the default for most businesses.

What is the prime lending rate in South Africa?

The prime lending rate is 10.25% as at June 2026 — calculated as the SARB repo rate (6.75%) plus 3.5 percentage points. This is the rate at which South African banks typically price variable-rate home loans, vehicle finance, and personal credit facilities. Prime adjusts automatically whenever the MPC changes the repo rate.

What is the current South African inflation rate?

Headline CPI inflation is approximately 3.0% as at May 2026, published monthly by Statistics South Africa (StatsSA). This is within the SARB's revised 3% point inflation target (±1% tolerance band). Core inflation excludes food and energy and typically runs below headline CPI. The SARB's MPC uses CPI projections as a primary input into interest rate decisions.

Wandile Lokwe

FAIS Key Individual · 20 years South African financial services

SARB rates are updated within 24 hours of every MPC announcement. VAT thresholds and rates are updated after every Budget. The VAT registration threshold change to R2,300,000 in Budget 2026 is correctly reflected here and in all tools on this platform.

Content last updated: June 2026 · Repo rate effective 20 Nov 2025 · VAT threshold effective Budget 2026 · Next MPC: 28 May 2026 · Contact: wandile@centurionai.co.za