VAT Registration Guide South Africa — How to Register with SARS

R1M

Compulsory threshold

R50k

Voluntary threshold

15%

Standard VAT rate

2 mo

Typical VAT period

Step-by-step VAT registration guide

Step 1 — Determine if you must or want to register

Compulsory: Your taxable turnover exceeds or is likely to exceed R1 million in any 12-month period. You must register within 21 business days of crossing this threshold.

Voluntary: Your taxable turnover exceeds R50,000 per year. You may choose to register to reclaim VAT on your business expenses and to appear more credible to VAT-registered clients.

Step 2 — Gather your documents

You'll need: South African ID (or passport); proof of address (not older than 3 months); company registration documents (for Pty Ltd); 3 months' bank statements; proof of trading (invoices, contracts, or lease agreement); CIPC certificate (for companies); your income tax number.

Step 3 — Register on SARS eFiling

Go to efiling.sars.gov.za. Log in or register as a new user. Navigate to Registration, Amendments & Verification → Register for VAT. Complete the VAT101 form online. Upload your supporting documents. Submit and note your submission reference number.

Step 4 — Wait for your VAT number

Processing typically takes 3–21 business days. SARS may request additional documents or call you for verification. Once approved, your VAT registration number (format: 4xxxxxxxxx) will appear on eFiling. You can only charge VAT on invoices after your effective registration date.

Step 5 — After registration: your ongoing obligations

VAT returns (VAT201): Most businesses submit bi-monthly (every 2 months). Some may qualify for monthly or 6-monthly returns.
Charge VAT: Add 15% to all standard-rated supplies and issue tax invoices over R50.
Claim input VAT: Reclaim VAT paid on business expenses (with valid tax invoices).
Pay VAT: If output VAT exceeds input VAT, you pay the difference to SARS by the 25th of the month after the VAT period ends.
Record-keeping: Keep all tax invoices for 5 years.

What must a valid tax invoice include? The words "Tax Invoice"; your VAT registration number; the date; an invoice number; your business name and address; the client's name and address; a description of the goods or services; the quantity; the VAT-exclusive price; the VAT amount (15%); and the VAT-inclusive total. For invoices under R50 (tax invoices) different rules apply.

Generate a compliant tax invoice →