The main VAT registration requirement in South Africa is turnover. You must register with SARS once your taxable supplies exceed, or are expected to exceed, R2.3 million in any consecutive 12-month period. You may register voluntarily once they exceed R120,000. Both thresholds took effect on 1 April 2026, replacing the old R1 million and R50,000 limits.
Beyond the threshold, you need a registered tax profile, an enterprise that makes taxable supplies, a bank account, a verifiable business address and proof of the turnover you declare. The sections below cover who must register, what documents SARS asks for, how the process works and what you must do once you have a VAT registration number.
Business Requirements at a Glance
- Compulsory registration: taxable supplies of more than R2.3 million in any consecutive 12 months, or a written contractual obligation that means you will exceed it. You must apply within 21 business days of the date the threshold is or will be exceeded.
- Voluntary registration: taxable supplies below R2.3 million but above R120,000 in the past 12 months.
- Special cases below R120,000: SARS allows certain applicants to register voluntarily before reaching R120,000, including municipalities, welfare organisations, people acquiring a business as a going concern, and some activities such as farming and mining.
- Rate: the standard VAT rate is 15%. Budget 2026 did not change it.
- Where: registration is done 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
VAT is charged under the Value-Added Tax Act, and registration becomes a legal obligation once you pass the compulsory threshold. It does not matter whether you are a sole proprietor, partnership, company, close corporation or trust. The test is the value of taxable supplies, which includes both standard-rated and zero-rated supplies. Exempt supplies do not count towards it.
If you should have registered but did not, you remain liable for the VAT on your supplies from the date you became liable, whether or not you charged it to customers, and penalties and interest can apply. Track your turnover on a rolling 12-month basis rather than at your financial year-end.
For small business VAT registration, the voluntary route is a real choice. It lets you claim input VAT on your business costs, but you must then charge VAT and file returns. Customers who are not VAT vendors themselves cannot claim that VAT back, so your prices go up for them.
Documents and Ownership Information Required
SARS asks for supporting documents mainly when it flags an application for verification. If you receive a Registration Application Review Notice, you have 21 business days to submit what it lists. Late or incomplete documents delay processing. The core VAT registration documents are:
- Identity: an ID, passport or other valid identity document for the sole proprietor, or for the directors or members of a company or close corporation, and the entity’s registration documents. Trusts submit the trust deed registered with the Master’s Office.
- Proof of address: SARS accepts documents such as utility, rates or telephone accounts less than three months old.
- Bank confirmation: a stamped letter from your bank, not older than three months, confirming the account holder’s name, account number, account type and branch code. The account is normally in the vendor’s name. Using a third party’s account needs a VAT119i indemnity, and SARS allows this only in limited cases, such as holding companies and subsidiaries.
- Proof of taxable supplies: for example copies of invoices issued, signed financial statements, signed contracts or sale agreements, signed lease agreements, or written confirmation that a tender was awarded. For a going concern, bring proof of the seller’s supplies.
- Representative vendor details: the natural person, resident in South Africa, who is responsible for the entity’s VAT duties. For a company, this is its public officer.
SARS’s VAT registration guide says it does not accept business plans, cash flow projections, orders without proof of supply, or tender proposals before an award as proof of turnover. It may also visit your business premises before it approves registration.
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 showing your VAT registration number.
- Submit a VAT201 return for every tax period, even if you did not trade. Returns filed on eFiling are due by the last business day of the month after the tax period ends.
- Keep records that support your output and input VAT.
- Micro businesses registered for turnover tax may register for VAT and file every four months instead.
If your turnover falls, SARS will not automatically cancel your registration just because you are under R2.3 million. Where your taxable supplies for the previous 12 months are below R120,000, SARS will notify you that it intends to cancel your registration, and you can object. If your registration is cancelled, whether you asked for it or SARS did, you must account for exit VAT on assets and trading stock you still hold, valued at the lower of cost or market value.
Process, Deadlines and Ongoing Obligations
Online VAT registration through eFiling is SARS’s main channel, and it works the same whether you are in George, Oudtshoorn or anywhere else in South Africa:
- Log in to SARS eFiling and go to SARS Registered Details, then Maintain SARS Registered Details.
- Add VAT as a new tax product and complete your business details, liability date, activity codes and banking details.
- Submit. If SARS identifies no risk, it issues your VAT reference number immediately.
- If SARS needs to verify your application, it sends a Registration Application Review Notice. Upload the listed documents within 21 business days.
If you cannot use eFiling, book a virtual (telephone or video) or branch appointment through SARS eBooking. You may be asked to complete the VAT101 registration application or the RAV01 form. You can download both from the SARS Register for VAT page. The VAT101 must be signed by the owner, partner or representative vendor. A tax practitioner or a power of attorney cannot sign it.
When registration is complete, SARS issues a Notice of Registration. This is the document most people mean by a “VAT registration certificate”. SARS staff will not confirm a VAT number verbally.
VAT registration number format: a South African VAT number has 10 digits and starts with 4 (for example, 4xxxxxxxxx). It has no letters and no country prefix. To check that a supplier’s VAT registration is genuine, use the SARS VAT vendor search. It returns a result only for an exact match.
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 12-month period (previously R1 million). Voluntary registration is available above R120,000 (previously R50,000). Some older SARS pages and guides still show the previous figures.
How quick is the VAT registration process in South Africa?
If your eFiling application raises no risk flags, SARS issues the VAT number immediately. If SARS selects it for verification, the time depends on how quickly you submit the requested documents (you have 21 business days) and whether SARS visits your premises.
What documents do I need for VAT registration?
Identity documents for the owner, directors or members, the entity’s registration documents or trust deed, proof of address, a bank confirmation letter not older than three months, and proof of your taxable supplies, such as invoices, signed financial statements or signed contracts.
Can a small business register for VAT below R2.3 million?
Yes. You can register voluntarily if your taxable supplies in the past 12 months exceeded R120,000, or earlier if you fall into a category SARS allows, such as buying a going concern. Weigh the input VAT you would claim against the compliance work and the effect on customers who are not VAT-registered.
How do I check whether a VAT registration number is valid?
Use the SARS VAT vendor search. It needs an exact match. A valid number has 10 digits and starts with 4.
I am already registered but my turnover is below R2.3 million. Must I deregister?
No. SARS is not automatically cancelling existing registrations under the new compulsory threshold. You may apply to deregister, but you will pay exit VAT on assets you keep. If your supplies are below R120,000, SARS may start cancelling your registration and will notify you first.
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.