Tax & SARS Guides
VAT Registration and Returns for South African Businesses
4 MIN READ · TAX & SARS GUIDES
VAT is charged at 15% on most goods and services in South Africa. As a registered VAT vendor you collect VAT from your customers on behalf of SARS, and you can claim back the VAT you paid on your own business purchases — known as input tax recovery. The difference between what you collected and what you paid is what you owe SARS (or what SARS owes you as a refund).
| Threshold Type | Until 31 March 2026 | From 1 April 2026 |
|---|---|---|
| Compulsory registration | R1 million in taxable turnover in any 12-month period | R2.3 million |
| Voluntary registration | R50,000 | R120,000 |
| Registration deadline once threshold crossed | 21 business days | 21 business days |
Voluntary registration before you cross the threshold can make sense if your customers are mostly VAT-registered businesses who can claim back the VAT you charge them, or if you make significant taxable purchases and want to reclaim the VAT on those. The decision depends on your specific business model.
| Category | Frequency | Period Ends | Who It Applies To |
|---|---|---|---|
| A | Every 2 months | January, March, May, July, September, November | Default for most small and medium businesses |
| B | Every 2 months | February, April, June, August, October, December | Default offset cycle |
| C | Monthly | End of each calendar month | Mandatory if taxable supplies exceed R30 million |
| D | Every 6 months | End of February and August | Farming activities or Turnover Tax businesses |
| E | Every 12 months | End of vendor's financial year | Fixed property letting, movable goods, connected companies |
When you deregister from VAT, SARS treats all your remaining business assets as if they were sold on the last day of your registration. You owe output VAT at 15% on the market value of those assets — even though no cash changed hands. This is a cash flow risk worth understanding before making any deregistration decisions. Get advice from an accountant before voluntarily deregistering if your business holds significant assets.
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