Question 1

What is VAT?

Accepted Answer

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.

Question 2

Do I need to register for VAT?

Accepted Answer

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.

Question 3

What are “taxable supplies”?

Accepted Answer

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.

Question 4

What is the difference between compulsory and voluntary VAT registration?

Accepted Answer

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.

Question 5

How long does VAT registration take?

Accepted Answer

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

Question 6

What documents do I need to register for VAT?

Accepted Answer

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

Question 7

Do I need a business bank account?

Accepted Answer

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

Question 8

Can I register for VAT without a bank account?

Accepted Answer

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

Question 9

Can I backdate my VAT registration?

Accepted Answer

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.

Question 10

Can I claim VAT on expenses before I register?

Accepted Answer

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.

Question 11

What happens if I don’t register for VAT when I’m required to?

Accepted Answer

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.

Question 12

How often do I need to submit VAT returns?

Accepted Answer

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

Question 13

When is VAT due after filing?

Accepted Answer

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

Question 14

Can I register for VAT even if I’m a small business?

Accepted Answer

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.

Question 15

What are input VAT and output VAT?

Accepted Answer

Output VAT: VAT you charge your customers.
Input VAT: VAT you pay on business expenses.
VAT payable = Output VAT – Input VAT.

Question 16

What types of sales are zero-rated or exempt?

Accepted Answer

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

Question 17

Do foreign companies need to register for VAT?

Accepted Answer

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

Question 18

What qualifies as “electronic services”?

Accepted Answer

Examples include:
 • Online courses
 • SaaS platforms
 • Digital subscriptions
 • Software downloads
 • Streaming content

Question 19

Can SARS reject my VAT application?

Accepted Answer

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.

Question 20

How do I get my VAT Notice of Registration (VAT103)?

Accepted Answer

You can download it on eFiling:
Profile → SARS Registered Details → Notice of Registration → VAT

Question 21

Can I cancel my VAT registration later?

Accepted Answer

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

Question 22

What happens after I get my VAT number?

Accepted Answer

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.

Question 23

What are common mistakes businesses make with VAT?

Accepted Answer

• 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.

Question 24

Can I get a VAT refund?

Accepted Answer

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.

Question 25

Can HAS Accounting handle the entire VAT process for me?

Accepted Answer

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

VAT Registration Made Simple and Reliable

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