When must I register for VAT in South Africa?

# When Must I Register for VAT in South Africa? You must register for VAT in South Africa when your **taxable turnover exceeds R2.3 million** in any 12-month period, effective from **1 April 2026**. This is a compulsory requirement under SARS regulations. ## Compulsory VAT Registration Thresholds **Current threshold (until 31 March 2026):** R1 million in any consecutive 12-month period **New threshold (from 1 April 2026):** R2.3 million in any consecutive 12-month period Once you exceed these thresholds, you have **21 days** to register for VAT with SARS from the date you exceeded the threshold. ## Voluntary VAT Registration You can choose to register voluntarily for VAT if your taxable turnover is: - **Until 31 March 2026:** Between R50,000 and R1 million annually - **From 1 April 2026:** Between R120,000 and R2.3 million annually ## Key Registration Requirements **Time limit:** Register within 21 days of exceeding the compulsory threshold **Registration process:** Complete and submit VAT101 form to SARS **Required documents:** - Completed VAT101 registration form - Supporting business documentation - Bank account details for refunds ## When Taxable Turnover Is Calculated SARS calculates your taxable turnover using: - **Past 12 months:** Actual taxable supplies made - **Next 12 months:** Reasonably expected taxable supplies This means you must register if you expect to exceed the threshold in the coming year, even if you haven't reached it yet. ## What Counts as Taxable Supplies Include all supplies subject to VAT at 0% or 15%, but exclude: - Exempt supplies (like residential rent) - Capital asset sales (unless you're a dealer) - Supplies made before starting your business ## Penalties for Late Registration **Standard penalty:** R250 per month or part thereof for late registration **Additional consequences:** - Interest on unpaid VAT - Potential criminal charges for wilful non-compliance - Administrative burden of retrospective VAT calculations ## How to Register 1. **Complete VAT101 form** on the SARS eFiling platform 2. **Submit required documents** including proof of business activities 3. **Await VAT number allocation** (typically 7-14 working days) 4. **Start charging VAT** from your effective registration date WeekdayApp automatically tracks VAT registration thresholds and SARS compliance deadlines for accounting practices, helping prevent costly missed registrations from R199/user/month. ## Important Dates to Remember - **1 April 2026:** New thresholds take effect - **Registration deadline:** 21 days after exceeding threshold - **First VAT return:** Due within two months of registration