How to Register for VAT with SARS
Value Added Tax (VAT) is a consumption tax charged at 15% on most goods and services in South Africa. Businesses that supply taxable goods or services must register for VAT with SARS once they exceed the compulsory registration threshold. Businesses below the threshold may register voluntarily. This guide explains when and how to register.
If your taxable turnover exceeds R1,000,000 and you are not registered for VAT, you are breaking the law and face penalties. Register immediately if you have crossed this threshold.
VAT Registration Thresholds
| Registration Type | Taxable Turnover Threshold | When to Register |
|---|---|---|
| Compulsory registration | Exceeds R1,000,000 in any 12-month period | Within 21 days of exceeding the threshold |
| Voluntary registration | Exceeds R50,000 in any 12-month period | At any time once threshold is met |
| Association not for gain | Any amount | Special provisions apply |
Who Should Voluntarily Register for VAT?
Voluntary VAT registration is beneficial for businesses that supply goods or services to other VAT-registered businesses, because it allows you to claim back the VAT you pay on business expenses (input tax).
Consider voluntary registration if you:
- Supply goods or services primarily to other VAT-registered businesses
- Have significant VAT-inclusive input costs (equipment, materials, professional services)
- Export goods, as exports are zero-rated and registration allows you to claim input tax refunds
- Want to appear more credible or established to business clients
Documents Required for VAT Registration
- Completed VAT101 application form (available on eFiling)
- Certified copy of your ID document or company registration documents (COR14.3 / COR14.1)
- Proof of banking details (bank statement not older than 3 months, in the name of the business)
- Proof of address (utility bill or lease agreement not older than 3 months)
- Proof of taxable activity (contracts, invoices or purchase orders showing business activity)
- If a company: copies of share certificates and list of directors
- If a trust: trust deed and letters of authority
How to Register for VAT on eFiling
- Log in to www.sarsefiling.co.za.
- Navigate to Home > Tax Types and select Value Added Tax.
- Click Register and complete the VAT101 digital form.
- Capture your business details, the nature of your taxable supplies and your estimated annual turnover.
- Select your preferred VAT period (monthly or bi-monthly/every 2 months).
- Upload all required supporting documents.
- Submit the application. SARS will review it and may contact you for additional information.
- Once approved, SARS will issue your VAT registration number and your first VAT201 return will become available on eFiling.
You can only register for VAT if you have a South African tax number. Register for income tax first if you have not already done so.
After Registration: VAT Returns and Payments
Once registered, you must submit VAT201 returns and pay any VAT owing by the last business day of the month following the end of your VAT period. Late submissions attract penalties and interest.
VAT periods are generally monthly (for businesses with turnover above R30 million) or bi-monthly. SARS assigns your period based on your registration information.
You must issue valid tax invoices to all customers for taxable supplies. The invoice must include your VAT number, the customer details, a description of goods or services, the VAT amount and the total amount including VAT.
VAT Rates in South Africa
| Supply Type | VAT Rate | Examples |
|---|---|---|
| Standard-rated supplies | 15% | Most goods and services |
| Zero-rated supplies | 0% | Exported goods, basic foodstuffs, international transport |
| Exempt supplies | Exempt (no VAT) | Residential rental, financial services, educational services |
| Mixed supplies | Depends on component | Mixed goods with both standard and zero-rated elements |