VAT reporting means submitting a VAT201 return for every tax period you are registered as a VAT vendor, and paying any VAT due by the same date. eFiling returns are due by the last business day of the month after the period ends; manual returns are due by the 25th. SARS sets this out in its obligations of a VAT vendor page.
A period with no activity still needs a return. If you made no taxable supplies or owe no tax, you must submit a nil return.
Business Requirements at a Glance
- A VAT201 return for every tax period, including nil returns
- Payment of any VAT due by the due date for the period
- Valid tax invoices, which support your input tax claims
- Records kept for 5 years
- Refund claims made within five years of the return due date
Registration and Legal Requirements
Only registered vendors file VAT returns. For the compulsory registration threshold, SARS lists R2.3 million from 1 April 2026 and a VAT rate of 15%; confirm both on the SARS VAT page before you rely on them.
SARS allocates your tax period, and it decides how often you file. The VAT 404 Guide for Vendors (Issue 15, December 2024) describes five categories: Category A is two-monthly, with periods ending January, March, May, July, September and November. Category B is two-monthly, ending February, April, June, August, October and December. Category C is monthly. Category D is six-monthly and is available to certain farmers and micro businesses. Category E is annual. Confirm your own category with SARS, since which category you are allocated depends on your business.
Documents and Ownership Information Required
Tax invoices and bills of entry form the audit trail SARS uses to verify that you complied with the law. They also support your input tax deductions, so keep them with your return workings. For what a valid invoice must show, see our guide to SARS tax invoice requirements.
You must retain your records for 5 years, and produce them to SARS on request.
Tax, Licence and Compliance Requirements
The VAT you pay over is the output tax on your supplies, less the input tax on purchases from your suppliers and other permissible deductions. Each deduction needs the prescribed documentary proof.
Input tax can only be claimed on expenses linked to your taxable supplies, and some are denied. The VAT 404 guide discusses the denied items, including motor vehicles, so check it before claiming on entertainment or vehicles.
SARS may withhold or suspend a refund while it verifies a claim, and may ask for supporting documents. It should pay a correct refund within 21 business days of receiving the return. Have your invoices ready.
Process, Deadlines and Ongoing Obligations
- eFiling: submit and pay by the last business day of the month after your period ends
- Manual filing: by the 25th of the following month
- If the 25th is not a business day, the preceding business day applies
Register for and file through SARS eFiling. Even if you pay at a bank, you must still send the VAT201 to SARS.
Late payments of VAT attract penalty and interest. SARS does not state the penalty rates on the pages we checked, so confirm the amounts with SARS. File on time even where you cannot pay, and then arrange payment with SARS.
Frequently Asked Questions
What is VAT reporting?
It is the VAT201 return you submit to SARS for each tax period, declaring output tax and input tax and paying what is due. Most vendors file through eFiling.
When is my VAT return due?
By the last business day of the month after your tax period ends if you file on eFiling, or by the 25th if you file manually.
Do I file a return if I did not trade?
Yes. If you made no taxable supplies or owe no tax, you must submit a nil return.
What if I cannot pay?
Submit the return on time anyway. Late payments of VAT attract penalty and interest, so speak to SARS about payment arrangements.
How long must I keep VAT records?
Five years.
Can I claim VAT on all expenses?
No. Input tax must relate to your taxable supplies and be supported by the prescribed documents, and some items are denied. Check the VAT 404 guide for the specific rules.
How long does a VAT refund take?
SARS should pay a refund within 21 business days of receiving a correct return, but it may withhold or suspend payment while it verifies the claim. A claim must be made within five years of the return due date.
Confirm filing dates, tax periods and rates with SARS or a registered tax practitioner. See business and compliance requirements and the company registration requirements for starting a business.