Registered VAT vendors in South Africa must submit VAT returns for every tax period and pay any VAT due by the due date. Returns are submitted through eFiling, and they must be filed whether or not you traded in the period.
The most common and most avoidable failure is not filing a nil return. A period with no activity still requires a return, and not submitting one is a default that attracts penalties even though no VAT was owed.
Business Requirements at a Glance
VAT reporting obligations cover the following.
- Submitting a VAT return for every tax period, including nil returns
- Paying VAT due by the due date for the period
- Issuing valid tax invoices meeting the prescribed content requirements
- Keeping records for the prescribed retention period
- Retaining valid tax invoices to support input VAT claims
- Accounting for VAT on imports and, where applicable, on imported services
- Correcting errors through the prescribed process rather than adjusting later returns informally
Registration and Legal Requirements
Your tax period is allocated by SARS and determines how often you file. Categories differ in frequency, and some are available only to specific types of vendor.
Late submission and late payment attract penalties and interest separately, so a late return with the payment made on time still attracts a penalty.
Documents and Ownership Information Required
A valid tax invoice must contain prescribed information, and input VAT cannot be claimed without one. Claims supported by invoices missing required details are disallowed on audit, which is the most common audit adjustment.
Records must be retained for the prescribed period and must be available to SARS on request. Electronic records are acceptable provided they can be produced.
Tax, Licence and Compliance Requirements
Thresholds and rates are set in legislation and revised, commonly with each annual budget. This page does not restate them, because an out-of-date figure would be actively misleading. Confirm the current figures with SARS.
Input VAT may only be claimed on expenses incurred for making taxable supplies, and certain expenses are specifically denied, including most entertainment and passenger vehicles.
SARS routinely verifies refunds, and a refund claim will commonly trigger a request for supporting documents. Have the invoices ready rather than assembling them after the request.
Process, Deadlines and Ongoing Obligations
File on time even where you cannot pay. The penalties for late filing and late payment are separate, and filing on time limits the exposure while you arrange payment.
Reconcile your VAT account to your accounting records each period rather than annually. Errors compound, and correcting a year of them is far harder than catching one.
This page is general information and not legal or tax advice. Confirm current thresholds, rates and requirements with SARS or a registered tax practitioner, since they change with each budget.
Frequently Asked Questions
Do I file a return if I did not trade?
Yes. A nil return is still required, and not filing is a default attracting penalties even where no VAT was owed.
What makes a tax invoice valid?
It must contain the prescribed information. Input VAT claims supported by invoices missing required details are disallowed on audit.
What if I cannot pay?
File on time regardless. Late filing and late payment attract separate penalties, so filing limits your exposure.
Can I claim VAT on all expenses?
No. Input VAT may only be claimed on expenses for making taxable supplies, and certain expenses including most entertainment and passenger vehicles are denied.
Confirm current filing deadlines, tax periods and record-keeping requirements with SARS. This page is general information and not legal or tax advice. Confirm current thresholds, rates and requirements with SARS or a registered tax practitioner, since they change with each budget. Browse all business and compliance requirements.