Who needs to register for VAT?
VAT registration is compulsory once your taxable supplies exceed R2.3 million in any 12-month period. That threshold rose from R1 million, effective 1 April 2026 (the first change to the compulsory threshold since 2009). Once you cross it, SARS gives you 21 business days to apply.
Below that figure, it's your choice. Voluntary registration opens once your taxable supplies exceed R120,000 in the past 12 months, or you reasonably expect them to in the next 12, for example because you hold written contracts for that value. That threshold rose too, in the same 2026 Budget, up from R50,000.
What counts as a taxable supply?
Most goods and services sold in South Africa count, split across three rates.
- Standard rate (15%): most goods and services
- Zero rate (0%): exports, certain basic foodstuffs, illuminating paraffin
- Exempt: financial services, residential accommodation, public transport
How to register: step by step
You can register through SARS eFiling, by booking a SARS eBooking appointment, or at a branch. Online is the easiest for most people.
- Create or log in to your eFiling account at efiling.sars.gov.za
- Go to SARS Registered Details, choose "Maintain SARS Registered Details", then "Add new product registration" and select VAT
- Complete the VAT section with your business details, the date you became liable, and your banking information. SARS may ask you to verify your identity with facial biometrics, and the VAT101 application form is the paper equivalent
- Submit supporting documents if SARS asks. Depending on your situation these can include certified ID, a bank confirmation letter, proof of your business (contracts or invoices), and business registration documents such as a CIPC certificate. If SARS needs to validate your application it sends a Registration Application Review Notice, and you have 21 days to respond. Not sure whether you need a registered company at all first? Our CIPC registration guide covers sole proprietor vs Pty Ltd and the BizPortal process
- Wait for approval. SARS will confirm your VAT number and the date your registration takes effect
VAT filing periods: which category are you in?
Once you're registered, SARS allocates a filing category based on your turnover and business type, and you can ask for a change if you meet the criteria. Most small businesses land in Category A or B, a two-monthly cycle either way, just offset by a month: Category A periods end in January, March, May, July, September and November, Category B in February, April, June, August, October and December.
- Category C (monthly): compulsory once taxable supplies exceed R30 million over any 12-month period
- Category D (six-monthly): available to qualifying farming enterprises with total farming turnover under R1.5 million
Your registration approval confirms which category applies to you.
What changes after registration?
Several things change the moment your registration is approved, and most of them happen at once:
- Every invoice you issue must be a SARS-compliant tax invoice (see our tax invoice checklist, or how to create an invoice)
- You must charge 15% VAT on standard-rated supplies
- You must file VAT201 returns, usually every two months
- You can claim input VAT on business expenses, provided your suppliers give you valid tax invoices
- You must keep proper records for 5 years
Common mistakes to avoid
- Issuing invoices without your VAT number on them
- Forgetting to update your invoice template after registering
- Claiming input VAT from a supplier invoice that isn't SARS-compliant
- Missing a filing deadline: the penalty applies from day one
- Mixing personal and business expenses in your VAT calculations
VAT filing deadlines
Most small businesses file every two months. If you file and pay through eFiling, both are due on the last business day of the month after your tax period ends.
Pay late and SARS adds a 10% penalty on the outstanding amount, plus interest until you settle it. Put your filing dates somewhere you'll actually see them.
What if your turnover drops after you've registered?
Falling back below R2.3 million doesn't cancel your registration on its own. You stay a VAT vendor, with every obligation that comes with it, until SARS approves an application to deregister. Our VAT deregistration guide covers when that's worth doing and the exact process.
Getting help
SARS runs a free contact centre on 0800 00 7277. If your situation is complicated (a mix of taxable and exempt supplies is a common one), get a registered tax practitioner to check your first few returns before you file them alone.
Frequently asked questions
Can I register before reaching any threshold at all? Only if you can show SARS at least R120,000 in taxable supplies over the past 12 months, or a reasonable, documented expectation of reaching it within the next 12.
What if I'm late registering after crossing R2.3 million? SARS can register you retroactively from the date you should have registered, and charge VAT, penalties and interest on everything sold in between. Apply within your 21 business days rather than waiting to be caught.
Do I charge VAT while my application is still being processed? Not until SARS issues your VAT number. If your registration is backdated, though, you may owe VAT on sales made since the effective date, so keep accurate records of your turnover in the meantime.
How do I actually submit and pay once I'm registered? Through a VAT201 return filed via eFiling. Our step-by-step guide walks through preparing your figures and paying on time.
