VAT Registration Made Simple and Reliable

VAT (Value-Added Tax) is a consumption tax charged on most goods and services in South Africa. The standard VAT rate is 15%. Businesses that are VAT-registered must charge VAT on their sales (output VAT) and can claim back VAT paid on business expenses (input VAT). VAT is collected by businesses on behalf of SARS and paid over through regular VAT returns.

You must register if your taxable sales exceed R1 million in any 12-month period, or if you have a contract indicating you will exceed that amount. You can also register voluntarily from R50,000 in sales.

Taxable supplies are goods or services that are subject to VAT at 15% or 0%. It excludes salaries, passive income (like interest), and exempt supplies.

Compulsory: When your turnover exceeds R1 million in 12 months.

Voluntary: When your turnover is at least R50,000 or you meet other specific SARS criteria.

Depending on SARS workload and verification, it can take a few days to a few weeks.

Typical documents include:

• Signed & completed VAT101

• Certified ID / passport of Directors

• Certified ID / passport of Public Officer

• CIPC documents (CoR 14.1 and CoR 14.3)

• Appointment of Public Officer

• Proof of address (Company)

• Proof of address (Public Officer)

• Bank confirmation letter

• 3 Months bank statement of business

• Financial statements, management accounts, invoices, or contracts

• Tax compliance for all Directors & Public Officer

NB: Please ensure the following:

• Certified IDs & Passports are legible

• The words “True Copy” and “Commissioner of Oaths” must appear on the certification stamp

If proof of address is in the name of a third party:

• Complete CRA01 (Signed by third party)

HAS Accounting will guide you based on your specific situation

Yes. SARS requires an active bank account in the business name to verify trading activity.

No. SARS will not approve your VAT registration without an active bank account belonging to the entity.

Yes, but with conditions:

• Compulsory registration: Can be backdated up to 6 months via eFiling.

• More than 6 months: Requires a SARS branch appointment and supporting documents.

• Voluntary registration: Generally, cannot be backdated unless justified with documents.

VAT Applications – cannot be backdated unless turnover of R1m is already evident.

Yes, in some cases. You may claim VAT on:

• Capital goods purchased up to 5 years before registration

• Stock on hand

• Certain business launch/startup expenses Each claim must meet SARS requirements.

SARS may issue:

• Penalties

• Interest on VAT owed

• Backdated VAT assessment for the period you should have been registered This can become expensive, so it’s best to register on time.

Most businesses submit VAT returns every 2 months (Category B). Larger turnover businesses may be required to file monthly.

VAT payments are due by the 25th of the month after the VAT period ends. Late payment results in penalties and interest.

Yes - voluntary registration is available from R50,000 in turnover or if you meet other criteria. Many small businesses register early to claim input VAT.

Output VAT: VAT you charge your customers.

Input VAT: VAT you pay on business expenses.

VAT payable = Output VAT – Input VAT.

Examples of zero-rated items:

• Exports

• Certain food items

• International transport

Examples of exempt items:

• Rental of residential accommodation

• Interest and financial services

• Educational services

Yes. Non-resident suppliers of electronic or digital services must register once they exceed R1 million in supplies to South African customers.

Examples include:

• Online courses

• SaaS platforms

• Digital subscriptions

• Software downloads

• Streaming content

Yes, if:

• Documents are missing

• Bank account cannot be verified

• Your business activity is unclear

• You don’t meet the voluntary registration criteria

We manage this process for you to ensure approval.

You can download it on eFiling:

Profile → SARS Registered Details → Notice of Registration → VAT

Yes. VAT can be deregistered if your turnover falls below R50,000 in a 12-month period or if you permanently stop trading.

You must:

• Charge VAT on sales

• Submit VAT returns on time

• Keep proper records

• Keep SARS updated on any business changes

We can assist with full VAT compliance and return submissions.

• Registering too late

• Incorrectly claiming expenses

• Misunderstanding zero-rated vs 15% VAT

• Forgetting to submit returns

• Not keeping invoices or proper records

We help you avoid these issues.

Yes. If your input VAT is higher than your output VAT (especially in startup stages or capital-intensive businesses), you may receive a refund from SARS.

Absolutely. We manage everything from qualification assessment to final VAT number issuance - including all SARS communication.