VAT Registration


VAT registration at SARS can take up to 21 days depending on whether you already have a trading CIPC-registered company and how long SARS’s processing takes and also if you submit the relevant requirements on time.

The South African revenue department (SARS) is responsible for VAT (Value-added Tax) administration. If you do not have a trading company yet, VAT Registration may take up to 2 months, because the regulation requires that you have a trading business before you can register for VAT.

We can register your company for VAT in less than a week. Click on the WhatsApp link or simply call us and we will explain how, 0817562659.

What are the benefits of registering for VAT? 

Wondering whether VAT registration is good or bad for your business’s long-term growth? Here are the 3 benefits to VAT registration.

The most significant benefit to voluntary VAT registration is your eligibility for growth opportunities. Contracts, RFQs and Tenders often request a VAT number.

Numerous Service Provider Companies also require VAT numbers. It may also simplify your invoicing, as many companies request VAT invoices or quotations.

Do all goods and services have VAT in South Africa?

No, some items are taxed at 0% VAT, others are VAT exempt and then there’s also deemed supplies.

The most significant difference between VAT exempt and 0% VAT is your eligibility to register or claim VAT. VAT exemption means you cannot register or claim VAT back at all.

In short, there are exchanges where you do pay an output tax even if you haven’t sold or bought anything.

When do you have to register for VAT?

VAT registration is mandatory for any entity who earns more than R1 million over the course of 12 consecutive months. Any entity that’s required to register for VAT is referred to as a Vendor by SARS. Vendors can be individuals, trust funds, partnerships, businesses, organisations, foreign donor funds or municipalities.

VAT needs to be registered within 21 days of exceeding R1 million.

Your business is eligible for voluntary VAT registration when you exceed R50 000 over the a period of 12 months. Small businesses registered for Turnover Tax can also voluntarily register if they meet all the requirements.

When can you reclaim VAT?

If you’re registered for VAT you can reclaim the VAT you’ve paid on any service or good that’s a business expense. These exclude anything that’s used for entertainment purposes like club memberships (even if it’s used for your business).

Naturally, you cannot claim the VAT back on any VAT exemption or 0% VAT items, because essentially you did not pay any VAT on these items.

For this process, you need to submit a refund return to SARS. SARS has to pay you within 21 days starting from the day that you submit your full refund return.