Small business requirements for SARS come down to four things: register for the taxes you are liable for, file returns on time, pay what you owe, and keep your registered details up to date. A business that does all four stays tax compliant. SARS’s small business page is the starting point for registration and compliance.
Registration comes first. A company registers with CIPC, SARS generates its income tax number, and the company representative then registers on eFiling and adds VAT or PAYE/SDL/UIF as needed. This page covers those SARS business applications and what compliance requires afterwards. For the wider picture see our guide to SARS small business tax requirements.
Business Requirements at a Glance
SARS describes tax compliance as follows on its tax compliance status page:
- No outstanding returns
- No outstanding debt, unless a payment arrangement or suspension of payment has been agreed
- Registration for every tax product you are liable for
- Registered particulars that are up to date
- Tax reference numbers merged, or declared on the ERC01 form, where a taxpayer holds more than one
Registration and Legal Requirements
This is how small business registration with SARS works for a company.
- Register the company with CIPC. This must happen first.
- SARS generates the income tax reference number automatically.
- The company representative registers on SARS eFiling.
- Add VAT or PAYE/SDL/UIF on eFiling under Maintain SARS Registered Details, if you are liable for them.
Which registrations apply depends on what the business does:
- PAYE, SDL and UIF — an employer must apply within 21 business days after becoming an employer, if it pays remuneration above the tax threshold
- VAT — compulsory when taxable supplies exceed R2.3 million in any consecutive 12-month period, raised from R1 million from 1 April 2026. The voluntary threshold is R120 000 (previously R50 000). See the SARS VAT registration page
- Turnover Tax — for micro businesses with qualifying turnover of R2.3 million or less from 1 April 2026. You can register on the SARS Online Query System. See the Turnover Tax page
Some older SARS documents still show the R1 million figure. The thresholds above apply from 1 April 2026.
Tax compliance status also replaced the old paper tax clearance system. It was introduced in 2015, and the SARS compliance status page explains how a third party can view your status with a PIN.
Documents and Ownership Information Required
For VAT and PAYE/SDL/UIF registrations on eFiling, SARS issues a Registration Application Review Notice listing the supporting documents you must submit. Submit them via eFiling, the SARS Online Query System or a SARS branch (A4 paper only). If they are not submitted within 21 business days, the application is rejected. See the SARS registration guidance.
- CIPC registration details for the company
- The documents listed in your Registration Application Review Notice
- Up-to-date contact, address and banking details on your SARS profile
- Where you have more than one tax reference number, the details needed to merge them or declare them on the ERC01
A company must also have a public officer. If the public officer becomes disqualified or unsuitable, the company must notify SARS in writing of the new public officer within 21 business days.
Tax, Licence and Compliance Requirements
- Income tax — the company files an income tax return each year. See our guide to SARS small business tax requirements for rates and deadlines
- Interest — SARS charges 10.25% per annum on late or underpaid tax from 2 March 2026
- Penalties — the Tax Administration Act provides for fixed-amount and percentage-based penalties, and understatement penalties of up to 200%
- Objections — an objection to an assessment or decision must be submitted within 80 business days of the assessment date, or the date written reasons were provided. Confirm what applies to a late objection with SARS
See the SARS Tax Guide for Small Businesses for how these rules apply to small businesses.
Process, Deadlines and Ongoing Obligations
Compliance status is not fixed. It changes as you stay compliant, and anyone you authorise sees your status as it is at the date and time they view it.
To give a third party a Tax Compliance Status PIN for Good Standing, follow the steps in the SARS TCS leaflet:
- Be registered for eFiling with at least one tax type activated.
- Check your My Compliance Profile, which shows registration status, submitted returns, debt and supporting documents.
- Request Good Standing.
- If your affairs are in order, the PIN is issued immediately by SMS or email. Each request gets a unique PIN, and the third party needs your tax reference number and the PIN.
If your profile shows non-compliant, hover over the indicator to see what to fix, or use the Challenge Status option at the bottom of the My Compliance Profile screen. The Tender option no longer exists; use Good Standing.
Frequently Asked Questions
How do I register a small business with SARS?
Register the company with CIPC, then register on eFiling once SARS has generated the income tax number. Add VAT and PAYE/SDL/UIF if you are liable for them, and submit the supporting documents within 21 business days.
What are SARS business applications?
They are the registrations a business makes on eFiling: income tax, VAT and PAYE/SDL/UIF. Turnover Tax applications can be made on the SARS Online Query System.
Do I need SARS eFiling for my business?
The company representative registers on eFiling to update information and transact electronically, and VAT and PAYE are added there. Start on the SARS small business page.
Is there a SARS guide for small businesses?
Yes. SARS publishes the Tax Guide for Small Businesses 2025/2026 and a Small Business Essential Tax Guide leaflet. The guide is on the SARS website.
When must a small business register for VAT?
When taxable supplies exceed R2.3 million in any consecutive 12-month period. Apply within 21 business days.
How is compliance status checked?
Through eFiling, using your tax compliance status PIN. The third party sees your overall status when they view it, not a fixed record.
What if my profile shows non-compliant?
Check what is outstanding, such as returns, debt or registration, and fix it. If you believe the status is wrong, use the Challenge Status option on eFiling.
Confirm anything specific to your business with SARS or a registered tax practitioner. See business and compliance requirements and company registration requirements.