VAT Registration in South Africa: Thresholds, Process & Deadlines

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Value-Added Tax (VAT) is a tax on the supply of goods and services, currently charged at a standard rate of 15% in South Africa. Knowing when you must register — and when it's worth registering voluntarily — can have a real impact on your cash flow.

When VAT registration is compulsory

You must register for VAT once your taxable turnover exceeds R2.3 million in any consecutive 12-month period — or where you reasonably expect to exceed it under a written contract. This threshold increased from R1 million with effect from 1 April 2026. Once you cross it, registration is not optional.

When you can register voluntarily

You may also choose to register voluntarily if the value of your taxable supplies is less than R2.3 million but has, under certain circumstances, exceeded R120,000 in the past 12 months. Voluntary registration can make sense if:

• Your customers are themselves VAT-registered businesses (they can claim the VAT back).
• You incur significant VAT on purchases and want to claim input VAT.
• Being VAT-registered adds credibility with larger clients.

It's not always the right move for businesses selling mainly to the public — so it's worth a quick conversation before registering.

How VAT works once registered

• You charge output VAT (15%) on your taxable sales.
• You claim input VAT on qualifying business purchases.
• You pay SARS the difference (or claim a refund if input exceeds output).

VAT returns and deadlines

VAT is declared on a VAT201 return. Most businesses file every two months (Category A or B), while larger businesses file monthly. Returns and payments are generally due by the 25th (or the last business day of the month when filing and paying via eFiling). Accurate, up-to-date records are essential to file correctly and on time.