The rate
The standard rate in South Africa is 15%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Compulsory once taxable supplies exceed R2.3 million in any 12 months, the threshold SARS applies from 1 April 2026, up from R1 million. Voluntary registration starts at R120,000, raised from R50,000. Vendors now below the threshold may apply to deregister.
How to register
Apply within 21 business days of your taxable supplies passing, or being certain to pass, the compulsory threshold. On eFiling, open SARS Registered Details, choose Maintain SARS Registered Details, then Revenue, VAT and Add new product registration. Pick a business activity code from the VAT 403 guide and complete the facial biometric check if asked. Otherwise book a virtual eBooking appointment with the reason VAT registration. Only the owner, a partner or the representative vendor may sign; a power of attorney is not accepted.
If SARS sees no risk, it issues the VAT number immediately. If not, a Registration Application Review Notice in your eFiling correspondence lists the documents needed, such as invoices issued, signed financial statements, contracts or leases. Submit them through the SARS Online Query System, or at a branch by appointment in A4, within 21 business days or the application is rejected.
eFiling can backdate a compulsory registration by up to six months; older cases need a branch visit with evidence. A voluntary registration starts on the application date. Download your Notice of Registration from eFiling.
Filing and paying
Registered and filed with South African Revenue Service (SARS).
Most vendors file every two months on eFiling; returns and payment are due by the last business day of the month after the period ends (the 25th for manual payment).
Penalties for getting it wrong
A 10% penalty plus interest on late payment, and administrative penalties for late returns.