VAT Registration & Compliance Guide
Everything you need to know about VAT in South Africa — from registration thresholds to filing your VAT201.
Do You Need to Register for VAT?
Compulsory
Over R1 million
If your taxable turnover exceeds R1 million in any 12-month period, you must register for VAT within 21 days.
Voluntary
R50K – R1M
If your turnover is between R50,000 and R1 million, you may choose to register voluntarily. Useful if you have significant input VAT to claim.
Cannot Register
Under R50K
If your taxable turnover is below R50,000 in a 12-month period, you cannot register for VAT.
How to Register for VAT
Log in to SARS eFiling
Go to sarsefiling.co.za and log in with your credentials. If you don’t have an eFiling profile, register first.
Navigate to SARS Registered Details
Select SARS Registered Details → Maintain SARS Registered Details and choose “Value-Added Tax” as the tax type to register.
Complete the VAT101 Form
Provide your business details, banking information, estimated turnover, and preferred filing period (bi-monthly is standard). Upload supporting documents such as your bank statement and proof of trading.
Receive Your VAT Number
SARS will process your application within 21 business days. Once approved, your VAT number appears on your eFiling profile and you can begin charging and claiming VAT.
Input vs Output VAT
Output VAT
VAT you charge on sales to customers. You collect this on behalf of SARS.
Example: You sell a product for R1,000 + 15% VAT = R1,150
Output VAT = R150
Input VAT
VAT you pay on business purchases. You can claim this back from SARS.
Example: You buy supplies for R500 + 15% VAT = R575
Input VAT = R75
What you owe SARS each period:
Output VAT (R150) − Input VAT (R75) = R75 payable to SARS
If Input VAT exceeds Output VAT, SARS owes you a refund.
Filing Your VAT201
Bi-Monthly Filing Periods
| Period | Months Covered | Filing Deadline |
|---|---|---|
| Period 1 | March – April | Last business day of May |
| Period 2 | May – June | Last business day of July |
| Period 3 | July – August | Last business day of September |
| Period 4 | September – October | Last business day of November |
| Period 5 | November – December | Last business day of January |
| Period 6 | January – February | Last business day of March |
Filing Process
Reconcile your VAT accounts
Ensure all sales and purchase invoices for the period are captured and your VAT control account balances.
Log in to SARS eFiling
Navigate to Returns → Value-Added Tax and open the VAT201 return for the current period.
Complete the return
Enter your total output VAT (on sales) and input VAT (on purchases). The form calculates the net amount payable or refundable.
Submit and pay
File the return and make payment via eFiling before the deadline. Keep a copy of the submission receipt for your records.
Common VAT Mistakes
Claiming VAT on Exempt Supplies
You cannot claim input VAT on exempt supplies such as financial services, residential rental, and public transport. Check the VAT Act schedules before claiming.
Missing Filing Deadlines
Late submissions attract a penalty of 10% of the VAT payable, plus interest. SARS may also impose an additional fixed penalty for repeat offenders.
Not Keeping Invoices for 5 Years
SARS requires you to retain all tax invoices, debit and credit notes for at least five years. Without valid tax invoices, input VAT claims can be disallowed on audit.
Incorrect Apportionment
If you make both taxable and exempt supplies, you must apportion input VAT correctly. Claiming the full amount when only a portion relates to taxable supplies will trigger SARS queries.
Invalid Tax Invoices
Tax invoices must contain the supplier’s VAT number, the words “Tax Invoice”, and a full description of goods or services. Missing details mean you cannot claim the input VAT.
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