VAT registration is compulsory once your taxable supplies exceed R2.3 million in any consecutive 12-month period, and you may register voluntarily once they exceed R120,000. Both thresholds apply from 1 April 2026, replacing the old R1 million and R50,000 limits. SARS notes that the changes were announced in Budget 2026 but not yet promulgated, and applies them to new registrations from that date (SARS Budget 2026 FAQ).
Registration is done with SARS. Below, you will find who must register, the documents SARS asks for, how to get a VAT number online and what you must do once you are a vendor.
Business Requirements at a Glance
- Compulsory registration: taxable supplies made, or to be made, of more than R2.3 million in any consecutive 12 months. You must apply within 21 business days from the date the R2.3 million is or will be exceeded.
- Voluntary registration: taxable supplies above R120,000, but below the compulsory threshold.
- Exceptions below R120,000: SARS’s VAT 404 guide lists some, such as buying a business as a going concern and welfare organisations. That guide was written against the old thresholds, so confirm any exception with SARS.
- Rate: the standard VAT rate is 15% and the zero rate is 0%.
- Where: with SARS, not CIPC. A company must already exist (see company registration requirements) before it can register as a VAT vendor.
Registration and Legal Requirements
Registration is a legal obligation once you pass the compulsory threshold. Track your taxable supplies on a rolling 12-month basis, not only at financial year-end, and remember the test also looks forward: the 21 business days run from the date the threshold “is or will be” exceeded, as the SARS Register for VAT page puts it. For the consequences of registering late, ask SARS directly, as the penalty rules are not covered here.
For small business VAT registration, the voluntary route is a real choice. It lets you claim input VAT on your costs, but you must then charge VAT and file returns. Customers who are not VAT vendors cannot claim that VAT back, so your prices effectively go up for them. Micro businesses registered for turnover tax may elect to remain in the VAT system.
If your taxable supplies in the preceding 12 months fall below R120,000, SARS will notify you of its intention to cancel your registration. Being under R2.3 million alone is not the trigger.
Documents and Ownership Information Required
SARS usually asks for supporting documents when it flags an application for review. The documents are listed in the Registration Application Review Notice, and you must submit them within 21 business days or the application is rejected. Documents described as “recent” must be no more than three months old at the date of application. Expect to provide:
- Identity and entity documents for the owner, partners, or the company’s representatives, as listed in the notice.
- Proof of address that is recent (under three months old). The notice sets out which documents SARS accepts.
- Bank confirmation for the account. The account should be in the vendor’s name. Using a third party’s account needs a VAT119i indemnity, and SARS allows third-party details only for a holding company or a subsidiary.
- Proof of taxable supplies: copies of invoices issued, signed financial statements, written approval confirming a tender was awarded, signed contracts, sale agreements or signed lease agreements.
- Representative vendor details: for a company, the representative vendor is its public officer.
SARS does not accept business plans, cash flow projections, orders without proof of actual supply, or tender proposals before the tender is awarded as proof of taxable supplies. See the SARS guide to completing the VAT registration application for detail. Faxed or photocopied applications are not accepted.
Tax, Licence and Compliance Requirements
There is no separate licence for VAT. Once SARS registers you, you are a VAT vendor and these obligations apply:
- Charge VAT on your taxable supplies and issue valid tax invoices.
- Submit a VAT201 return for every tax period. If you did not make taxable supplies or no tax is payable, you must still submit a nil return. Manual returns are due by the 25th; returns filed on eFiling are due by the last business day of the month after the period ends (SARS: obligations of a VAT vendor).
- Keep records and documentary proof of your transactions for at least five years.
- Micro businesses (turnover tax) that apply in writing can be placed on the six-monthly filing category, known as Category D.
If you later deregister, VAT consequences can apply to assets and stock you keep. Confirm these with SARS or a registered tax practitioner before you apply to cancel.
Process, Deadlines and Ongoing Obligations
Online VAT registration through eFiling is SARS’s main channel, and it works the same wherever in South Africa you are based, including Oudtshoorn.
- Log in to SARS eFiling and add VAT through SARS Registered Details.
- Complete your business details and banking details, then submit.
- If SARS identifies no risk, it issues your VAT reference number immediately.
- If SARS needs to verify the application, it sends the Registration Application Review Notice. Submit the listed documents within 21 business days.
If you prefer not to use eFiling, make a virtual appointment on SARS eBooking. You may need the VAT 101 registration application form or the RAV01 amendments form, both available from the SARS Register for VAT page. The application must be signed by the individual owner, partner or representative vendor. A tax practitioner cannot sign it and a power of attorney is not accepted.
Once registered, SARS issues a Notice of Registration, which is what most people mean by a VAT registration certificate. VAT vendors can request and obtain it on eFiling. To confirm that a supplier’s VAT registration is genuine, use the SARS VAT vendor search.
Frequently Asked Questions
What is the VAT registration threshold in South Africa?
From 1 April 2026, registration is compulsory once taxable supplies exceed R2.3 million in any consecutive 12 months (previously R1 million). The voluntary threshold is R120,000 (previously R50,000). Older SARS guides, including VAT 404, still show the previous figures.
How quick is the VAT registration process in South Africa?
Where SARS identifies no risk, it issues the VAT reference number immediately. Otherwise you have 21 business days to submit supporting documents, and SARS’s VAT 404 guide advises allowing at least 21 business days for processing.
How do I get a VAT number?
Apply on SARS eFiling under SARS Registered Details, or book a virtual appointment on SARS eBooking. For a company, the public officer is the representative vendor and signs the application. The VAT reference number is issued on approval.
What documents do I need for VAT registration?
Proof of your taxable supplies, such as invoices issued, signed financial statements, a tender award letter or signed contracts, plus the identity, address and bank documents listed in the Registration Application Review Notice. Recent documents must be under three months old.
Can a small business register for VAT below R2.3 million?
Yes, voluntarily, if taxable supplies exceed R120,000. Weigh the input VAT you would claim against the extra filing work and the effect on customers who are not VAT vendors.
What is a VAT registration number and what format is it?
It is the number SARS allocates to a registered vendor and that appears on tax invoices. No format rule is set out here, so use the SARS VAT vendor search to check whether a number is genuine.
How do I get a VAT registration certificate?
Request the VAT Notice of Registration on SARS eFiling once your registration is complete.
VAT thresholds, forms and procedures are set by the South African Revenue Service and change with the national budget. Confirm them with SARS or a registered tax practitioner before you apply. This page is general information, not tax advice. See company registration requirements and statutory requirements, and browse all business and compliance requirements.