When Must You Register for VAT?
You must register for VAT if your taxable supplies exceed R1 million in any 12-month period. You can voluntarily register if your turnover exceeds R50,000 in 12 months.
What is VAT?
Value Added Tax (VAT) is currently charged at 15% in South Africa. As a VAT vendor, you charge VAT on your sales (output VAT), claim back VAT on your business purchases (input VAT), and pay SARS the difference.
How to Register
- Register on SARS eFiling at efiling.sars.gov.za
- Complete the VAT101 form
- Submit supporting documents: ID, proof of address, bank statements, business registration docs
- Receive your VAT number usually within 21 working days
VAT Filing Periods
Most small businesses file every 2 months (bi-monthly). You will submit a VAT201 return and pay any amount owed.
Common VAT Mistakes to Avoid
- Not keeping valid tax invoices for purchases
- Claiming input VAT on non-business expenses
- Missing filing deadlines as penalties apply
- Charging VAT before you have a VAT number