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VAT is a consumption tax levied on most goods and services in South Africa. All companies are required to register for VAT once their turnover has exceeded R1 million in any 12-consecutive month period.

VAT registration can also be voluntary for companies whose turnover is less. If you need help registering for VAT, you’re welcome to make your order below to get started with the process right now.

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Description

Value Added Tax (VAT) is a form of consumption tax that is levied on the majority of goods and services within South Africa. It is a crucial source of revenue for the government and plays a vital role in funding various public services, including education, healthcare, and infrastructure development.

In accordance with the South African VAT Act, companies with an annual turnover exceeding R1 million are required to register for VAT. This threshold applies to both local and foreign businesses operating in the country. Once a company has exceeded the turnover threshold, it is required to register within 21 days and submit VAT returns to the South African Revenue Service (SARS) on a regular basis.

However, VAT registration is not limited to companies that meet the turnover threshold. Businesses whose turnover falls below this threshold can also register voluntarily for VAT. This can be particularly beneficial for companies that deal with other VAT-registered businesses, as it allows them to claim back the VAT they have paid on purchases made for their business.

The process of VAT registration can be complex and time-consuming. It involves submitting various documents to SARS, including financial statements, proof of address, and company registration documents. However, with the right guidance and support, the process can be streamlined and made more manageable.

If you require assistance with registering for VAT in South Africa, you can easily access professional services by placing an order below. Our team of experienced experts can help guide you through the process, ensuring that you meet all the requirements and deadlines set out by SARS. Don’t hesitate to take advantage of our services to help you navigate the world of VAT registration with ease.

FAQs

What is VAT?
VAT stands for Value Added Tax and is an indirect consumption tax levied on goods and services in the economy.  It is collected by the vendor (you) on behalf of SARS.
When do I need to register for VAT?
It is compulsory to register for VAT once your turnover has breached R1m in any 12-month consecutive period. You can voluntarily register for VAT but only if you have sales of more than R50,000. For the voluntary VAT registration, a minimum of three invoices that total more than R50,000  are required and these amounts must be reflected in your business bank account.
Can I charge VAT if I am not registered?
No! That is fraudulent as VAT is collected on behalf of the government and needs to be paid over to SARS.
What happens if I don’t register for VAT?
It is not a good idea to not register for VAT once your turnover breaches the R1 million per annum threshold as there are stiff penalties that will be levied.  These include the following:  a 10% penalty of the amount of the VAT not paid as well as interest at the prescribed rate on the amount of VAT not paid and that is just for starters.
How much is VAT?
Currently VAT is levied at 15% of the goods and services supplied by the VAT vendor.
What is a Public Officer?
The Public Officer for a company is the person who is responsible for all matters relating to SARS and the company’s representative for SARS.  In May 2021, SARS introduced tighter measures for companies interacting with SARS and will no longer process any SARS services for companies with no Public Officer appointed.
Is my Tax Registration Number also my VAT number?
No, Your Tax number is your income tax registration number and is different from a VAT registration number which needs to be applied for.

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