VAT Registration South Africa: 2026 Rules and Steps
Short answer
You must register for VAT (value-added tax) if your taxable supplies went over R2.3 million in any consecutive 12 months, or are likely to. Apply to SARS within 21 business days. You may register voluntarily if supplies are under R2.3 million but went over R120 000 in the past 12 months. These thresholds apply from 1 April 2026.
Join the Kwalify waitlist to collect documents and signatures on WhatsApp
Do I need to be VAT registered?
Yes, if your taxable supplies went over R2.3 million in any consecutive 12 months, are likely to, or a written contract means they will in the next 12 months. You then apply within 21 business days of the date the R2.3 million is or will be passed.
According to SARS, you may also choose to register if your taxable supplies are under R2.3 million but went over R120 000 in the past 12 months, under certain circumstances SARS sets out. Check those circumstances on the SARS page before you apply.
These thresholds apply from 1 April 2026. Before that date they were R1 million for compulsory registration and R50 000 for voluntary registration, as the SARS Budget 2026 FAQs explain.
The VAT rate is 15%. Use the VAT calculator to add or remove VAT from an amount.
How to register for VAT
The process is simple in outline. Prepare your documents (see the checklist below), apply to SARS, and answer any questions SARS asks. Check the SARS registration page for the current steps.
What a VAT vendor must do
Only a business registered for VAT (a VAT vendor) issues tax invoices or charges VAT. An unregistered business issues invoices without VAT.
Section 20(1) of the Value-Added Tax Act says a registered vendor making a taxable supply “must within 21 days of the date of that supply issue a tax invoice”.
For the paperwork, the invoice generator and the invoice template are free to use.
Worked example: when does Sipho have to register?
For example, Sipho Dlamini runs a small bakery-supply business in Durban. His taxable supplies are R170 000 a month for most of the year, and rise when he wins a contract. His 12 months to 31 May add up to R2 340 000, which is over R2.3 million. So he must apply to SARS within 21 business days of the date the threshold was passed.
Compare Thandi Nkosi, an example caterer in Soweto. She has R1 560 000 in taxable supplies over the past 12 months. That is under R2.3 million but over R120 000, so she may register voluntarily but does not have to.
Now the VAT. A R1 000 sale excluding VAT carries R150 VAT at 15%, so the invoice total is R1 150. That applies only once the business is a VAT vendor. Until then, Sipho and Thandi issue invoices without VAT. The thresholds come from the SARS registration page.
How Kwalify helps: If you register clients for VAT, Kwalify asks each client for their ID, bank letter and proof of address on WhatsApp, email or SMS. It checks each document against your rules, for example whether the ID is readable, the bank letter is recent and the name matches. Anything that fails a rule goes to a person to decide. Kwalify sends reminders until every document is in. Join the waitlist
Registration checklist
Print this list and tick items off before you apply. It reflects general practice, not a list SARS requires, as described on the SARS page and by Global Law Experts.
- CIPC registration certificate (companies)
- Certified ID or passport for owners and directors
- Stamped bank letter or recent three-month bank statement
- Proof of business address
- Proof of trading (invoices, contracts or quotes)
SARS may ask for other documents, so check its page.
FAQ
What is the difference between input VAT and output VAT?
Output VAT is the VAT a vendor charges on its taxable supplies. Input VAT is the VAT charged to the vendor on purchases made to produce those supplies, and the vendor may deduct it. According to the SARS VAT page, the vendor pays SARS the difference between output and input VAT, or claims a refund where input VAT is more than output VAT.
How to complete a VAT return?
You complete the VAT201 return on SARS eFiling, and you must be registered as an eFiler to do so. The return declares your output VAT and your input VAT for the tax period. The difference is what you pay SARS, or claim as a refund, as the SARS VAT page explains. The SARS guide to completing the VAT201 takes you through the steps.
Can I charge VAT if I am not registered?
No. Only VAT vendors may issue tax invoices or charge VAT. A business that is not registered issues invoices without VAT.
What if I register voluntarily and my turnover is below R2.3 million?
SARS allows voluntary registration if your taxable supplies went over R120 000 in the past 12 months. Check the SARS page for the conditions before you apply.