How to Submit Your VAT Return on SARS eFiling (VAT201)

Every registered VAT vendor must file a VAT201 return and pay any VAT owing by the due date. Missing the deadline triggers a 10% late payment penalty plus interest - even if the return was filed on time but the payment is late (SARS: VAT Returns, 2024). Understanding the VAT201 structure before you start makes the filing faster and reduces entry errors.

Key Takeaways

VAT201 due date: 25th of the month following the tax period (eFiling vendors get until the last business day of that month - verify with SARS).

Field 1A requires VAT-exclusive sales amounts - not VAT-inclusive totals.

Output VAT minus input VAT equals net VAT: positive means you pay; negative means SARS refunds you.

A 10% late payment penalty applies if payment is late, even when the return is filed on time.

Your VAT tax period

SARS assigns each vendor a VAT period - either monthly or bi-monthly (every two months). Your VAT period appears on your VAT Notice of Registration. Most smaller businesses are on a bi-monthly (two-month) period; larger vendors with significant output VAT may be on a monthly cycle.

Your return covers supply activity during that specific period. You declare output VAT (VAT collected from customers on sales) and input VAT (VAT paid to suppliers on business purchases), and the difference is either paid to SARS or refunded (SARS: VAT).

The VAT201 key fields

Output VAT - what you charged customers:

Field 1A: Standard-rated supplies - the rand value of goods and services supplied at 15%, before adding VAT. This is VAT-exclusive. SARS calculates the output VAT from this figure.
Field 1B: Zero-rated supplies at 0% - exports, some food items, and other zero-rated categories.
Fields 1C to 1E: Other supply types, adjustments, and capital goods - complete only where applicable.

Input VAT - what you paid to suppliers:

Field 2A: Input VAT on standard-rated purchases supported by valid tax invoices from registered VAT vendors.
Fields 2B and beyond: Capital goods and other input VAT categories.

Net VAT position:

Output VAT (from 1A at 15%) minus input VAT (from 2A) = net VAT.
If positive: you owe this amount to SARS.
If negative: SARS owes you a VAT refund.

Step-by-step filing on eFiling

Log in to sars.gov.za and go to VAT in the left navigation menu.
Select Returns, then VAT201.
Select the applicable tax period from the outstanding returns list.
Complete Field 1A with your total VAT-exclusive standard-rated sales for the period.
Complete Field 1B with zero-rated supplies, if applicable.
Complete Field 2A with total input VAT from valid tax invoices received in the period.
Review the calculated output VAT and net VAT position at the bottom.
Submit the return.
If VAT is owed, pay via the eFiling payment portal or EFT to SARS’s bank account before the deadline.

Payment deadline

VAT201 returns and payment are due by the 25th of the month following the end of your tax period (SARS: VAT Returns). For vendors filing on eFiling, SARS typically extends the deadline to the last business day of that month - but verify this concession for your specific period before relying on it.

A 10% late payment penalty applies automatically if payment is made after the deadline. Interest also accrues from the due date. These charges apply even if the return was filed on time.

Blocked input VAT

Not all VAT paid to suppliers is claimable. Common blocked items under section 17 of the VAT Act:

Entertainment: VAT on food, beverages, and entertainment is generally not claimable unless your trade is entertainment.
Motor vehicles: input VAT on the purchase of a passenger motor vehicle is blocked unless you are a motor dealer or can demonstrate exclusive taxable business use.
Club subscriptions and leisure activities: generally blocked.

Including blocked input VAT in your VAT201 is a misstatement that SARS will disallow in a VAT audit.

Reconciling before you submit

Before submitting the VAT201, reconcile the return to your accounting records:

Total all tax invoices issued to customers for the period - this should match Field 1A plus VAT.
Total all valid tax invoices received from VAT vendors - this should match Field 2A.
Confirm every input VAT claim is supported by a valid tax invoice that you can produce if SARS requests it.
Check that you have not included blocked input VAT (entertainment, certain vehicles).

How to correct a VAT error

If you discover an error in a previously filed VAT201 (SARS: Voluntary Disclosure Programme):

Minor errors below the SARS-specified threshold can sometimes be corrected in the next return period.
Larger errors require a formal correction through the Voluntary Disclosure Programme (VDP) or the dispute resolution process.

Do not ignore a known error - uncorrected VAT errors compound with interest from the original return date. Early disclosure through the VDP generally reduces the penalty exposure.

Frequently Asked Questions

What is the VAT201 filing deadline?

Returns and payment are due by the 25th of the month following the end of the tax period. For eFiling vendors, SARS typically extends this to the last business day of that month - verify the current concession at sars.gov.za before relying on the extension. Missing the deadline triggers a 10% late payment penalty plus interest.

Do I enter VAT-inclusive or VAT-exclusive amounts in Field 1A?

VAT-exclusive amounts only. Field 1A requires your sales value before adding VAT. SARS calculates the 15% output VAT from the figure you enter. A common mistake is entering the VAT-inclusive total, which causes SARS to calculate output VAT on an already-VAT-inflated amount, overstating your liability.

What should I do if I made an error on a previous VAT return?

Minor errors below the SARS threshold may be corrected in the next VAT return. Larger errors require formal correction through the VDP or dispute resolution process. Contact SARS early - uncorrected errors attract compounding interest, and voluntary disclosure before SARS discovers the error generally attracts lower penalties.

Can I claim input VAT on entertainment expenses for a business event?

Generally no. Input VAT on entertainment - food, beverages, and entertainment costs - is specifically blocked under section 17 of the VAT Act, regardless of the business purpose. Exceptions apply only to businesses whose trade is providing entertainment. Other legitimate business expenses without an entertainment element can be claimed with valid tax invoices.

Sources

SARS: VAT Returns (VAT201) - filing process, deadlines, eFiling concessions, and payment options
SARS: Voluntary Disclosure Programme - process for correcting VAT errors before SARS audits
VAT Act 89 of 1991, sections 16 and 17 - calculation of net VAT and blocked input VAT items

This guide is for general educational purposes. VAT201 fields, deadlines, and eFiling procedures can change - verify current requirements at sars.gov.za or with a qualified tax practitioner before filing.