SARS VAT Registration South Africa
Value Added Tax (VAT) in South Africa is administered by SARS. VAT registration is compulsory if your business taxable turnover exceeds or is expected to exceed R1 million in any 12-month period. Voluntary registration is available if your turnover exceeds R50,000 per year. The current standard VAT rate is 15%.
When Must You Register for VAT?
VAT registration in South Africa is mandatory once your taxable supplies (turnover from the sale of VAT-rated goods or services) exceed R1 million in any 12-month rolling period, or you have reasonable grounds to believe they will.
Voluntary registration is possible if your turnover exceeds R50,000 per year. Voluntary registration allows you to claim input tax on your business expenses and is often advantageous for businesses supplying other VAT-registered entities.
| Type | Turnover Threshold |
|---|---|
| Compulsory registration | Over R1 million in 12 months |
| Voluntary registration | Over R50,000 in 12 months |
| Agricultural enterprises | Over R50,000 (special rules apply) |
How to Register for VAT via SARS eFiling
- Log in to www.sarsefiling.co.za with your income tax credentials.
- Navigate to Home, then My Profile, and select Register for VAT.
- Complete the VAT101 form with details about your business, turnover, and banking information.
- Upload supporting documents: ID, company registration documents, proof of business banking account, and proof of business address.
- Submit the application. SARS may contact you for additional information or to schedule an inspection visit.
- Once approved, SARS will issue a VAT registration number starting with 4 (e.g., 4123456789).
Documents Required for VAT Registration
- ID document or passport of the applicant or authorised representative
- Company registration certificate (CoR 14.3) from CIPC
- Proof of business bank account (not older than 3 months)
- Proof of business address (lease agreement or municipal account)
- List of major customers and suppliers
- If turnover already exceeds threshold: proof of turnover such as bank statements or invoices
Late VAT returns attract penalties of up to 10% of the VAT due, plus interest at the prescribed rate. Always file on time even if you cannot pay immediately.
VAT Returns and Payments
Once registered, you must submit VAT returns (VAT201) either monthly or every two months, depending on your turnover and the category assigned by SARS. Returns and payments are due on the last business day of the month following the end of the tax period.
VAT returns must be submitted via SARS eFiling. You collect 15% VAT from your customers (output tax) and may claim back VAT you paid on business expenses (input tax). You pay SARS the difference.
VAT Exemptions and Zero-Rated Supplies
Not all supplies attract VAT at 15%. Zero-rated supplies are taxed at 0% and include basic foodstuffs (brown bread, milk, eggs, rice), exported goods and services, and certain financial services.
VAT-exempt supplies are not subject to VAT at all and include residential rentals, public transport under certain conditions, and some educational services. Businesses making only exempt supplies cannot register for VAT.