Accounting technology / Glossary / Accounting software in South Africa

Accounting software South Africa: VAT201 and PAYE for SARS

Definition

Accounting software in South Africa records VAT at the 15% standard rate and prepares the VAT201 return for the South African Revenue Service (SARS) eFiling, while payroll software works out PAYE, SDL and UIF for the monthly EMP201 and produces the IRP5 certificates for the twice-yearly EMP501 reconciliation.

Also calledSouth African accounting softwareaccounting software for SA

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VAT standard rate: 15%
VAT registration: R2.3 million
EMP201 due: 7 days after month end

What accounting software in South Africa has to handle

VAT: the standard rate is 15%. From 1 April 2026 a business must register once its taxable supplies pass R2.3 million in 12 months, up from R1 million, and the voluntary threshold rose from R50,000 to R120,000. Vendors submit the VAT201 return through SARS eFiling. Payroll: employers pay PAYE, SDL, UIF and any ETI on the EMP201 within seven days after the end of each month. The EMP501 reconciliation runs twice a year: the interim one for 1 March to 31 August 2026 is due between 21 September and 31 October 2026, and the annual one for the 2027 tax year between 1 April and 31 May 2027. It is filed through e@syFile Employer, or eFiling for up to 50 IRP5/IT3(a) certificates, and employers with more than 50 employees use e@syFile. Prices: Xero South Africa sells Starter, Standard and Premium plans in rand including VAT, with prices rising from 1 November 2026. Zoho Books Standard is R99 a month, or R82.50 a month billed annually, excluding taxes, with a free plan for revenue under R1 million. QuickBooks also sells in South Africa.

Common questions

What does accounting software need to do in South Africa?+

It applies 15% VAT and prepares the VAT201 return for SARS eFiling. Payroll software calculates PAYE, SDL and UIF for the monthly EMP201 and produces IRP5 certificates for the EMP501 reconciliation.

When must a business register for VAT in South Africa?+

From 1 April 2026, when taxable supplies pass R2.3 million in a 12-month period. Voluntary registration is open from R120,000.

When is the EMP501 due?+

The interim EMP501 for 1 March to 31 August 2026 is filed from 21 September to 31 October 2026, and the annual one from 1 April to 31 May 2027. Late submission carries a penalty of 1% of the annual PAYE liability a month, up to 10%.

Is there free accounting software in South Africa?+

Zoho Books has a free plan for businesses with revenue under R1 million a year. Its paid plans start at R99 a month, excluding taxes.