Understanding the VAT on Airline Tickets in South Africa: Everything You Need to Know

Understanding the VAT on Airline Tickets in South Africa: Everything You Need to Know

Are you planning a trip and wondering about the taxes that come with airline tickets in South Africa? Value-Added Tax (VAT) is a significant tax on airline tickets, and it’s essential to understand its implications. In this article, we will take a closer look at the VAT on airline tickets in South Africa.

What is VAT?

VAT is an indirect tax imposed on goods and services. It’s a consumption tax that is levied on the value added to a product or service at each stage of the supply chain. The end consumer ultimately bears the cost of this tax, as it’s included in the product’s price.

How Does VAT Affect Airline Tickets in South Africa?

In South Africa, the VAT rate on airline tickets is currently 0%. However, this was not always the case. Until 31 March 2018, the VAT rate on international and domestic airline tickets was 14%. In 2018, the VAT Act was amended to include a 0% VAT rate on the supply of international and domestic airline tickets.

Exceptions to the 0% VAT Rate on Airline Tickets

While the 0% VAT rate applies to most airline tickets, there are some exceptions. These include:

• Chartered flights that are not in the course of a scheduled airline service;
• Flights that originate from or terminate at airports outside South Africa, except for certain cross-border journeys;
• Flights for the transportation of goods and passengers that are not for business purposes or destined for a place outside South Africa;
• Flights that are not part of an international journey or a connected domestic journey; and
• Flights for passengers who are exempt from VAT e.g. diplomats, foreign governments, etc.

If you are unsure whether the 0% VAT rate applies to your airline ticket, it’s always best to check with your airline or travel agent.

Conclusion

In conclusion, understanding the VAT on airline tickets in South Africa is crucial for travelers. While the 0% VAT rate applies to most airline tickets, there are exceptions that travelers need to be aware of. Checking with your airline or travel agent can help you clarify any doubts you may have. Safe travels!