If you are a VAT vendor in South Africa, you claim the 15% VAT on your Amazon ads back as input tax, as long as your VAT number is in Seller Central. Expect 15% on both amazon.co.za and amazon.com invoices; what the number changes is whether those invoices are valid for your claim. If you are not registered, the 15% is simply lost, and registering voluntarily only pays if you sell to other VAT vendors: selling to consumers, it costs you more than it gives back.
For Amazon sellers (FBA and FBM) based in South Africa, from the Amazon Ads agreement, Amazon Ads help and SARS, checked in October 2026. General information, not tax advice.
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Who invoices your ads, and with what VAT?
Amazon invoices you from the company of the country your ads run in. The Amazon Ads agreement names one « Amazon Contracting Party » per country you buy ads for (Amazon Advertising Agreement).
| Your ads on | Invoiced by | VAT on the invoice |
|---|---|---|
| amazon.co.za | Amazon Commercial Services (South Africa) (Pty) Ltd | 15% |
| amazon.com | Amazon.com Services LLC | 15% expected |
- On amazon.co.za, 15% VAT is charged: the supplier is a South African company and the standard rate is 15% (VAT 404 Guide for Vendors). A vendor claims it like any other input tax.
- On amazon.com, South Africa is on Amazon's list of countries that collect tax on electronic services (countries list). Amazon warns that « in certain countries, Amazon may be required to collect VAT/GST even if a VAT/GST ID is provided » (Amazon Ads help), and South African law explains why: since 1 April 2025 a foreign supplier that sells electronic services « to both VAT registered vendors and non-vendors » must « account for VAT on all these supplies » (SARS FAQs on electronic services, question 6). Amazon sells ads to both.
- As a vendor, you claim that 15% too. If an amazon.com invoice comes without VAT once your number is on file, you owe nothing on it: services from abroad are only taxed as « imported services » when used « otherwise than for the purposes of making taxable supplies » (same FAQs, question 70).
You are a VAT vendor: check your number in Seller Central
The number goes into Seller Central, not into the advertising console (Register your Tax ID):
- In Seller Central, open Account Info.
- Choose VAT Information, then Add new VAT/GST Registration number.
- Enter your VAT number, matching your business address as Amazon asks.
Why it matters even though the VAT is charged either way: an invoice of R5,000 or more is only a full tax invoice if it shows the « name, address and VAT registration number of recipient » (section 20(4) of the VAT Act, VAT 404, 13.3). Without that, your input tax claim on large invoices can be refused. Check your company name and address in your billing profile too (Update billing details).
Invoices you forgot to claim are not lost. You have to make the deduction « in a tax period falling within a period of five years » after the period the tax invoice should have been issued in (VAT 404, 8.3.6). If old invoices lack your VAT number, ask Amazon to correct them through « Contact us », with proof that your registration was active in that period (Tax refunds).
If you want certainty before claiming a large amount on amazon.com invoices, SARS issues binding private rulings (VAT 404, chapter 15).
You are not registered: the 15% is lost
- Only a vendor deducts input tax. Every R1 of ads on amazon.co.za or amazon.com costs you R1.15.
- Registration is compulsory above R2.3 million of taxable supplies in any 12 months, from 1 April 2026, and you apply within 21 business days (SARS, Register for VAT). Then you have no choice, and you claim your ads VAT.
- Voluntary registration opens above R120,000 of taxable supplies in the past 12 months (same page). SARS « is administering new VAT registration applications based on the increased threshold » even though the regulation itself has not been updated yet.
| Ads per month | VAT lost per month | VAT lost per year |
|---|---|---|
| R5,000 | R750 | R9,000 |
| R20,000 | R3,000 | R36,000 |
| R50,000 | R7,500 | R90,000 |
Registering voluntarily when you sell to consumers: the honest maths
Registering gives you back 15% of your ads, but you must then charge 15% on every sale in South Africa. Consumers cannot claim it back, and your Amazon price is the market's price: you cannot add 15% to it. The VAT comes out of your margin.
SARS says it plainly: « It will generally not be advantageous for a person to register voluntarily where [...] most of the supplies are made to final consumers who are not registered for VAT » (VAT 404, 2.3.1).
Example: an FBA seller sells R80,000 a month to consumers (R960,000 a year), spends R8,000 on ads and R30,000 on other costs that carry VAT (Amazon fees, local stock), prices unchanged.
| Per month | Not registered | Registered |
|---|---|---|
| Sales collected | 80,000 | 80,000, of which 10,435 VAT to pay |
| Ads | 9,200 | 8,000 (VAT claimed) |
| Other costs | 34,500 | 30,000 (VAT claimed) |
| Left over | 36,300 | 31,565 |
Registering costs this seller R4,735 a month, about R56,817 a year, before the accountant. They claim R5,700 of VAT and pay R10,435. The rule: registering only pays if your costs that carry VAT (net of VAT) are higher than your sales net of VAT. For a profitable seller to consumers, that almost never happens.
And SARS does not backdate a voluntary registration: the VAT liability date follows the application date, unless you justify an earlier one with supporting documents (SARS, Register for VAT). Ads you ran before registering stay taxed.
You sell to VAT vendors: registering pays
A VAT vendor buying from you claims the VAT you charge. You add 15% on top of your price without losing anything, and you claim the VAT on your ads.
The same seller selling to vendors keeps R42,000 instead of R36,300: R5,700 a month, R68,400 a year. In the calculator, choose « Seller to businesses (B2B) ».
Frequently asked questions
Does Amazon charge South African VAT on amazon.com ads?
Yes, South Africa is on Amazon's list of countries where it collects tax on electronically supplied services. A vendor claims that VAT back as input tax.
Can I cancel a voluntary registration later?
Yes: a vendor may apply for cancellation when taxable supplies are below the compulsory threshold, and SARS sets the date (VAT 404, 2.9). Until then you charge VAT and file returns.
And if I stay unregistered?
Then every rand of ads that sells nothing costs you R1.15. Cut the searches that spend without selling first (Amazon negative keywords) and track what a click really costs (what Sponsored Products cost).
Work out your case with the Amazon Ads VAT calculator
Sources
- Amazon Advertising Agreement (« Amazon Contracting Party », « Elected Country »), Amazon Ads
- Value Added Tax (VAT) on Electronically Supplied Services (ESS) (updated 3 September 2025), Amazon Ads help
- Countries that collect tax on Electronically Supplied Services (3 September 2025), Amazon Ads help
- Register your Tax ID (24 February 2026), Amazon Ads help
- Tax refunds (3 September 2025), Amazon Ads help
- Update billing details (9 April 2026), Amazon Ads help
- Register for VAT (R2.3 million and R120,000 thresholds from 1 April 2026, liability date), SARS
- VAT 404 – Guide for Vendors (issue 15: 2.3.1, 2.9, 8.3.6, 13.3, chapter 15), SARS
- FAQs: Supplies of Electronic Services (issue 4: questions 6 and 70), SARS
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