When must a business register for VAT in South Africa?

Compulsory VAT registration applies when your taxable supplies exceed R1 million in any 12-month period. Voluntary registration is allowed if your taxable supplies exceed R50,000 in the past 12 months.

How do I register for VAT online?

You can register for VAT through SARS eFiling by completing the VAT registration form (VAT101) and submitting the required supporting documents.

What is the VAT rate in South Africa?

The standard VAT rate is 15%. Some supplies are zero-rated (0%) or exempt from VAT.

VAT Registration in South Africa: When & How to Register

Value-Added Tax (VAT) is a consumption tax levied on the supply of goods and services in South Africa. Most businesses must register for VAT once their taxable turnover crosses a specific threshold.

VAT registration is separate from income tax. You must register for VAT even if your company already has an income tax number.

VAT registration thresholds

Type	Threshold	When it applies
Compulsory registration	R1 million	Taxable supplies in any 12-month period
Voluntary registration	R50,000	Taxable supplies in past 12 months
Expected to exceed	R1 million	Reasonable expectation in next 12 months

How to register for VAT on SARS eFiling

1Register a SARS eFiling profile and link your income tax number.
2Navigate to the VAT registration section on eFiling.
3Complete the VAT101 form with company details, trade description, and turnover.
4Upload supporting documents: CIPC registration, ID, proof of address, and financial records.
5Submit the application and wait for SARS to review.
6Once approved, receive your VAT reference number and update your invoices to show VAT.

Documents you need

Certified ID of the public officer or representative
CIPC company registration certificate
Proof of business address
Latest financial statements or management accounts
Bank statements for the past three months
Expected turnover declaration

Compulsory vs voluntary VAT registration

Compulsory registration is required when your taxable supplies exceed R1 million in any 12-month period. You must register within 21 business days of exceeding the threshold.

Voluntary registration is allowed if your taxable supplies exceed R50,000 in the past 12 months. Smaller businesses often register voluntarily to claim input VAT on expenses or to improve credibility with larger customers.

VAT rate and returns

The standard VAT rate is 15%. Registered vendors must submit VAT201 returns, usually every two months, and pay the net VAT due to SARS. AccPro Lite generates VAT201-ready reports from your transactions and tracks output and input VAT automatically.

Related guides

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VAT registration in South Africa