VAT registration in South Africa is the process of registering your business as a VAT vendor with the South African Revenue Service (SARS). Once registered, you charge VAT on your taxable supplies at the standard rate of 15%, you may claim back the VAT you pay on business expenses (input VAT), and you submit a VAT return (the VAT201) to SARS for each tax period. Registering with SARS is free - there is no government fee to become a VAT vendor.
There are two ways into the VAT net. Compulsory registration applies once your taxable turnover passes the threshold. Voluntary registration is open to smaller businesses that choose to register before they have to, usually to claim input VAT or to look established to larger, VAT-registered customers. This page explains when a business must register for VAT, the thresholds, the documents SARS wants, how to register step by step, what it costs, how long it takes, your obligations after registering, and how to use the SARS VAT vendor search.
If you would rather not handle SARS yourself, Insika can prepare and lodge the VAT registration for you and keep your returns filed on time.
What VAT registration is
VAT, or Value-Added Tax, is an indirect tax on the consumption of goods and services in South Africa. It is currently charged at a standard rate of 15%. A VAT vendor is a business that SARS has registered to collect VAT on its sales and pay it over to SARS, less the input VAT it is entitled to claim on its own purchases.
When you register for VAT, SARS issues you a 10-digit VAT registration number. From your liability date you must add 15% VAT to your taxable supplies, issue tax invoices that meet the SARS requirements, keep proper records, and submit a VAT return for every tax period. In short, a registered vendor acts as a collector of VAT on behalf of SARS, which is why registration brings real, ongoing obligations and not just a number.
VAT registration is separate from registering your company. You first need a legal entity and an income tax registration before you deal with VAT. If you have not yet set up the business, start with company registration at CIPC, then add VAT once you are trading or close to the threshold.
Compulsory vs voluntary registration (the thresholds)
Whether you must register depends on your taxable supplies, meaning your VAT-able sales, over a rolling 12-month period. SARS increased both thresholds with effect from 1 April 2026, the first change since they were originally set, to ease the burden on small business.
Compulsory registration
You must register for VAT when the total value of your taxable supplies exceeds, or is likely to exceed, R2.3 million in any consecutive 12-month period (raised from R1 million on 1 April 2026). You also have to register if you have signed a contract that, on its own, will result in taxable supplies of more than R2.3 million over the next 12 months. Once you pass the threshold you must apply within 21 business days.
Voluntary registration
If you are under the compulsory threshold, you may choose to register voluntarily once your taxable supplies have exceeded R120 000 in the past 12 months (raised from R50 000 on 1 April 2026). New businesses that have not yet reached R120 000 can still register voluntarily on certain SARS grounds, for example where they have made taxable supplies of more than R4 200 in a month, or hold a contract or written commitment that shows the business is genuinely trading and heading toward the threshold.
Voluntary registration mainly suits businesses that buy a lot of VAT-able stock or equipment and want to claim that input VAT back, or that sell to VAT-registered customers who expect a tax invoice. The trade-off is the admin: once registered, you must charge VAT and file returns whether or not turnover is high.
| Type | Taxable supplies in 12 months | Obligation |
|---|---|---|
| Compulsory | More than R2.3 million | Must register within 21 business days |
| Voluntary | More than R120 000 | May register by choice |
| Voluntary (new business) | Under R120 000 but trading on SARS grounds | May register if SARS criteria are met |
Requirements for VAT registration
Before SARS will register you as a VAT vendor, you generally need to satisfy the following:
- A registered, active business. Usually a company registered with CIPC, a sole proprietor, or a partnership, that is already registered for income tax with SARS.
- A SARS-registered representative. A public officer or representative taxpayer must be recorded and verified at SARS for the entity (for example a director, updated through SARS Registered Details).
- A business bank account. SARS requires a South African bank account in the name of the enterprise. For voluntary registrations in particular, SARS can cancel a registration where no enterprise bank account has been opened.
- Proof that you are trading. SARS looks for evidence of an active enterprise, commonly through bank statements, invoices or contracts that show taxable supplies.
- A South African business address. Proof of the physical address of the enterprise.
Your tax affairs should also be in order. SARS validates the entity and its representative as part of registration, so an out-of-date public officer or unfiled income tax returns can hold things up. A clean SARS profile, or a current tax clearance, makes the registration smoother.
How to register for VAT step by step
Most VAT registrations are now done online through SARS eFiling. You can also book a SARS branch appointment, but eFiling is the standard route. This is how the application runs.
- Confirm you should register
Check your taxable supplies over the past and coming 12 months against the thresholds. If you have passed R2.3 million you must register within 21 business days. If you are between R120 000 and the compulsory threshold, decide whether voluntary registration is worth the admin for the input VAT you would claim.
- Get your SARS profile in order
Make sure the entity is registered for income tax, the SARS-registered representative (public officer) is recorded and verified, and your CIPC and SARS details match. Open a business bank account in the name of the enterprise if you do not already have one.
- Log in to SARS eFiling
Log in to your eFiling profile. Go to SARS Registered Details, then Maintain SARS Registered Details. Agree to the authorisation terms to edit the entity's registered information.
- Complete the VAT container
Open the VAT section and complete it: your trading name, the liability date (the date from which you become liable for VAT), your business activity code, your turnover figures, and your banking and address details. Attach the supporting documents requested.
- Submit and complete verification
Submit the registration. SARS validates the application and may ask for supporting documents within 21 business days, and for some applicants a virtual appointment or facial biometric authentication. Where no risk is flagged, SARS can issue the VAT number quickly.
- Receive your VAT number and start charging VAT
Once approved you receive a 10-digit VAT number and your assigned tax period. From your liability date you must charge 15% VAT on taxable supplies, issue valid tax invoices, and begin filing VAT201 returns.
How much does VAT registration cost
Registering for VAT with SARS is free. SARS does not charge a fee to register a business as a VAT vendor, whether the registration is compulsory or voluntary. If anyone quotes you a SARS fee for the registration itself, treat that as a red flag.
What can cost money is getting your business ready to register and meeting the obligations afterwards: opening a business bank account, preparing the supporting documents, and, if you choose, paying a consultant, accountant or tax practitioner to handle the SARS process and your ongoing VAT returns. Insika offers that done-for-you service. We do not charge a SARS fee, because there is none. We charge for doing the work.
| Item | Cost |
|---|---|
| SARS VAT registration fee | Free - SARS charges nothing to register |
| Business bank account | Bank charges vary by bank and account type |
| Preparing documents and proof of trading | Your time, or a professional fee |
| Optional professional help (registration + returns) | Quoted by your consultant or accountant |
How long does VAT registration take
There is no single fixed turnaround, because it depends on how clean your SARS profile is and whether SARS flags the application for extra verification.
- Faster: where your entity, representative and banking details are all verified and SARS sees no risk, a VAT number can be issued quickly, sometimes on the same day or within a few days.
- Typical: many registrations clear within about 21 business days, the window in which SARS may request supporting documents.
- Slower: where SARS requires additional verification, a virtual appointment, or further proof of trading, the process can stretch out to several weeks (some applicants report up to around 12 weeks in difficult cases).
The best way to keep it fast is to register from a fully verified, up-to-date SARS profile with your documents ready before you lodge.
Documents you will need
SARS may ask for any of the following to support a VAT registration. Having them ready and matching your SARS and CIPC records is the biggest factor in a quick approval.
After registration: VAT returns and obligations
Becoming a VAT vendor is the start of an ongoing duty, not a once-off task. From your liability date you must:
- Charge VAT at 15% on your taxable supplies and issue tax invoices that contain everything SARS requires, including your VAT number.
- Submit a VAT return (the VAT201) for every tax period, on eFiling, by the due date, even in a period where you had no sales (a nil return is still required).
- Pay the VAT due to SARS by the deadline, being the output VAT you charged less the input VAT you are entitled to claim. If your input VAT is more than your output VAT, you may be due a refund.
- Keep records of your tax invoices, receipts and VAT calculations for at least five years.
SARS assigns you a tax period when you register, commonly a two-month cycle (Category A or B) for most smaller vendors, with monthly, six-monthly or annual categories applying in specific cases. Late returns and late payments attract penalties and interest, so diarise every VAT201 deadline. Ongoing VAT returns are part of the broader accounting and tax work that Insika can run for your business.
VAT vendor search
The SARS VAT vendor search is a free online tool that lets you check whether a VAT number is genuine and matches the registered trading name. It matters because you can only claim input VAT on a valid tax invoice from a properly registered vendor, so verifying a supplier protects you from disallowed claims and from fraud.
To use it, go to the SARS VAT Vendor Search on the SARS eFiling site, accept the terms, choose to verify a VAT registration number, then enter the 10-digit VAT number together with the vendor's trading name and search. The tool confirms whether the number is registered and active. Use it on new suppliers, and when you receive an invoice with a VAT number you have not seen before.
Official sources
This guide is based on the current rules published by the relevant South African authorities. Always confirm the latest fees and requirements with the office that applies to you.
