Register for VAT
What is VAT (Value added tax)?
Value-added tax ("VAT") is an indirect system of taxation that is currently levied at 14% on the value of all goods and services supplied by vendors.
How VAT Works
You buy from a supplier whose price includes 14% VAT. When you sell goods or services to a customer, the price you charge also includes 14% VAT. The difference between the VAT you have paid and the VAT you have collected must be paid to the Receiver of Revenue.
Who needs to register for VAT?
Persons who make taxable supplies in excess of R1 million (from 1 March 2009) in any 12-month consecutive period are liable for compulsory VAT registration, but a person may also choose to register voluntarily provided that the minimum threshold of R50 000 (from 1 March 2010) has been exceeded in the past 12-month period.
Persons who are liable to register, and those who have registered voluntarily, are referred to as vendors.
Vendors have to perform certain duties and take on certain responsibilities if they are registered or liable to register for VAT. For example, vendors are required to ensure that VAT is collected on taxable transactions, that they submit returns and payments on time, that they issue tax invoices where required, that they include VAT in all prices advertised or quoted etc.
How do you register for VAT?
To register for VAT, you will need to complete a VAT101 form from SARS. Click here to go to the online form.
For other VAT information from SARS go to the SARS website. Click on "Forms" on the left hand side of the screen, and select VAT.
