How to Register for VAT in South Africa: A Step-by-Step Guide

When your business reaches the VAT registration threshold - or you choose to register voluntarily - you need to register with SARS as a VAT vendor. Registration is done through SARS eFiling or at a SARS branch. Understanding the process before you start prevents delays and incorrect effective dates.

Before you register: thresholds

Compulsory registration applies when your taxable supplies exceed R2.3 million in any consecutive 12-month period (from 1 April 2026, increased from R1 million - verify the current threshold with SARS for your registration date).

Voluntary registration is possible when taxable supplies exceed R120 000 in the past or prospective 12 months.

Taxable supplies include standard-rated (15%) and zero-rated (0%) supplies. Exempt supplies (such as residential rental income and financial services) do not count toward the threshold.

What you will need to register

For a sole proprietor or individual:

South African identity document or passport.
Proof of bank account in the name of the business (bank statement not older than three months).
Proof of address for the business (utility bill, lease agreement, or bank statement).
Proof of taxable supplies (invoices, contracts, bank statements showing income from taxable activities).

For a company or close corporation:

Company registration documents (COR14.3 or CoR15.1A from CIPC).
Proof of the company’s bank account.
Proof of the business address.
Proof of taxable supplies for the business.
If applying through eFiling, the applicant must be an authorised representative (tax practitioner or company director with eFiling access).

How to register on eFiling

Log in to eFiling at sars.gov.za.
Go to SARS Registered Details in the menu.
Select Register for VAT.
Complete the RAV01 form - this captures the business details, taxable supply history, bank account information, and the requested effective date.
Upload supporting documents (identity document, bank statement, proof of supplies, company documents if applicable).
Submit.

SARS will process the application and may contact you with additional queries or request a branch visit to verify your identity. Processing time is typically 5 to 21 business days depending on SARS workload and whether additional verification is needed.

The effective date

The effective date of VAT registration matters because you can only charge and collect VAT (and claim input VAT) from that date. You cannot retrospectively charge VAT on invoices before the effective date.

For compulsory registration, the effective date is the first day of the month following the month in which you exceeded the threshold. For voluntary registration, SARS may approve an effective date you request, subject to their requirements.

After registration

Once registered, you will receive a VAT registration number and must:

Charge VAT (15%) on all taxable supplies made from the effective date.
Issue tax invoices that comply with SARS requirements (vendor number, VAT amount clearly stated).
File VAT201 returns either monthly or bi-monthly (SARS allocates a tax period based on your taxable supply value and circumstances).
Pay VAT to SARS by the deadline - 25th of the month following the tax period (or the last business day before if the 25th falls on a weekend or public holiday).
Claim input VAT on valid tax invoices received from other VAT vendors for business expenses.

Common mistakes at registration

Applying with the wrong effective date - if you exceeded the threshold three months ago, the compulsory date is backdated, and SARS will expect VAT from that date.
Registering with a personal bank account instead of a business account.
Not keeping proof of taxable supplies at the time of application - SARS may ask for it.
Not updating your invoices to include the VAT number and comply with tax invoice requirements immediately from the effective date.

Key points

Register through eFiling using the RAV01 form; a branch visit may be required for identity verification.
The effective date determines when you start charging VAT and when you can first claim input VAT.
Have your bank statement, proof of supplies, and identity documents ready before starting the application.
Once registered, file VAT201 returns every one to two months and pay on time to avoid penalties.

Frequently Asked Questions

When must I register for VAT in South Africa?

Compulsory VAT registration is required when your taxable supplies exceed R2.3 million in any consecutive 12-month period (from 1 April 2026). You have 21 business days after crossing the threshold to apply. Voluntary registration is available once taxable supplies exceed R120 000 in any 12-month period.

What documents do I need to register for VAT on eFiling?

You will need a South African identity document or passport, proof of a business bank account (not older than three months), proof of the business address, and proof of taxable supplies such as invoices or bank statements. Companies also need their CIPC registration documents and must apply through an authorised eFiling representative.

What is the effective date of VAT registration and why does it matter?

The effective date is the date from which you are legally a VAT vendor - you may only charge output VAT and claim input VAT from that date. For compulsory registrations, it is the first day of the month following the month in which you exceeded the threshold. You cannot retrospectively charge VAT on invoices issued before your effective date.

How often do I need to file a VAT201 return after registering?

SARS assigns each vendor either a monthly or bi-monthly (every two months) tax period based on the size of your taxable supplies. You must file the VAT201 return and pay any VAT owing by the 25th of the month following the end of your tax period. eFiling filers may receive an extended deadline - confirm your specific period with SARS.

What happens if I register for VAT with the wrong effective date?

If the compulsory effective date is backdated because you exceeded the threshold months earlier, SARS will expect output VAT on all supplies made from that date. You may face penalties and interest on VAT that was not collected and paid. Use your supply history and invoices to determine the correct date before applying.

Sources

SARS: Register for VAT - current VAT registration thresholds, voluntary registration rules, and application guidance.
SARS: Value-Added Tax - VAT overview and vendor obligations.
SARS: VAT Returns - VAT201 filing and payment context.
SARS: Tax Invoices - tax invoice requirements after registration.

This guide is for general educational purposes. VAT thresholds, registration requirements, and SARS processes change - verify current requirements at sars.gov.za or with a qualified tax practitioner before registering.