Is VAT included in the safe deposit box price?
The short answer
It depends on how the price is quoted, so always check. Safe deposit box rental is a service, and a VAT-registered provider generally charges VAT on its services unless a specific exemption applies. Knox confirms whether its box prices include VAT. All Knox box prices include VAT. If you are a VAT vendor renting a box for business purposes, ask a tax practitioner whether you can claim the VAT back.
VAT on a box rental in general terms
Value-Added Tax is charged by VAT-registered businesses on most goods and services they supply in South Africa. Renting a safe deposit box is a service, so where the provider is registered for VAT, the rental is generally subject to VAT unless a specific exemption or zero-rating applies. The rate and the rules are set by law and can change, usually through the national Budget. SARS publishes guidance on how VAT works.
Reading a quoted price
Prices can be quoted including or excluding VAT, and the difference matters when you compare providers. When you receive a quotation, check:
- whether the rental price includes VAT;
- whether once-off fees and insurance premiums are shown with or without VAT;
- whether a deposit, if any, is treated differently from a fee;
- whether you will receive a tax invoice.
Knox's VAT treatment
How VAT applies to each of Knox's box charges is confirmed in the quotation and the agreement. If anything on your quotation is unclear, ask for a breakdown before you sign.
VAT on the box is separate from VAT on what you store
The VAT on renting a box has nothing to do with the tax treatment of the items inside it. For example, gold Krugerrands issued by the South African Reserve Bank are always zero-rated for VAT, while silver bullion is generally standard-rated, but that concerns buying and selling the items, not storing them. Treatment depends on the product and the facts.
If you rent a box for a business
A VAT-registered business may be able to claim input tax on a box used for its taxable activities, provided it holds a valid tax invoice and meets the other requirements. Individual circumstances differ, so confirm the position with a tax practitioner or SARS before relying on it.
How Knox handles this
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
