VAT Registration South Africa

Under the Value-Added Tax Act 89 of 1991, VAT registration is compulsory if your business turnover has exceeded R1,000,000 in the past consecutive 12 months, or if you have entered into a binding written contractual obligation to exceed R1,000,000 in the next 12 months. You must apply within 21 business days of exceeding this threshold.

Yes. A business may register voluntarily if taxable supplies (sales) have exceeded R50,000 in the preceding 12-month period, or if you have incurred qualifying commercial capital expenditure. Voluntary registration allows you to claim back 15% input VAT on business purchases and equipment.

SARS strictly scrutinises VAT applications to prevent fraud. Requirements include certified copies of director IDs, official business bank statement (with original bank stamp), proof of registered business address (municipal account or lease agreement), proof of turnover (issued tax invoices matching bank deposits), and a completed VAT101 application via eFiling.

When all verification documents and proof of turnover are prepared cleanly, SARS typically issues the VAT Notice of Registration (VAT103) within 5 to 15 business days. If SARS requests a virtual branch interview, our registered tax practitioners guide and represent you through the interview process.

Once registered, you must issue valid tax invoices containing your VAT number, charge 15% standard-rate VAT on taxable sales, keep strict double-entry accounting records, and submit bi-monthly or monthly VAT201 declarations and payments to SARS by the last business day of the subsequent month.