What are requirements for VAT registration?
VAT registration is mandatory for any entity who earns more than R1 million over the course of 12 consecutive months. Any entity that’s required to register for VAT is referred to as a Vendor by SARS.
How do I register for VAT in South Africa?
Submit the registration form to your local SARS branch within 21 days from date of exceeding R1 million. VAT is levied at a standard rate of 15% on the supply of goods and services by registered vendors. There is a limited range of goods and services which are subject to VAT at the zero rate or are exempt from VAT.
How do I check if a supplier is VAT registered?
SARS requires you to include the VAT registration number of the recipient of goods or services on any tax invoice you issue. If you want to ensure your supplier is really registered for VAT, use SARS’ VAT vendor search tool to verify the VAT number so you can issue tax invoices correctly.
Who is exempt from VAT?
Businesses which are considered “zero-rated” are exempt from paying VAT on the goods and services that they sell. They do not need to register for VAT nor charge any tax on sales. Examples of zero-rated items include food, books and pharmaceuticals.
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