How to do your VAT registration in South Africa

What a VAT registration entails

VAT collected by you from providing services

As a registered VAT vendor, you must charge and collect VAT on non-exempt services (such as marketing and availability services) supplied to MarketDirect.co.za or any other persons.

The benefit is that, if the VAT you get charged when buying services from others is more than the VAT you charge others, you get paid back the difference by SARS, a variety of conditions can cause this condition to occur, for example, some goods or services are VAT exempt in South Africa.

VAT charged to you on business expenses

VAT can also be charged to you by MarketDirect.co.za and other parties. For example, on business expenses such as deal facilitation fee on our purchase order and tender crowdfunding platform, etc. You may be able to deduct this from the VAT you have collected.

More details can be found on the VAT 404 : Guide to Vendors on the SARS website, Page 51-52.

Criteria and Requirements

How to get started

It is mandatory to register for VAT If the taxable supplies from non-exempt services supplied to MarketDirect.co.za and other parties, such as marketing and availability services, exceeds or is likely to exceed R1 million (2020) in any consecutive 12 month period.

You may qualify for voluntary VAT registration if your income (turnover) from such services exceeded R50,000 (2020) in the past period of 12 months.

More information can be found on the SARS’ website: VAT 404 – Guide for Vendors.

We strongly recommend that you speak with a tax professional to ensure you fully understand your VAT obligations.

How to do your VAT registration?

For All Business Regimes as well as Small Business Regimes

It is mandatory for a business to register for VAT if the total value of taxable supplies made in any consecutive twelve-month period exceeds or is likely to exceed R1 million.

A person can register for VAT on efiling or the person can complete the VAT 101 – Application for Registration form and submit the form at the local SARS branch.

The following documents must be submitted with the VAT registration application:

Copy of ID document for individual
Copy of Certificate of Incorporation – If the business is a registered company
Original bank statements (going back three months)
Original letter from your banker / Original stamped statement from the bank
Latest month invoices as proof of trading
A recent copy of the business municipal account/Rental agreement as proof of business address (SARS also accept clothing store accounts provided that the street address is stated on the account)

A small business that is registered as a micro business may also register for VAT and may elect to submit returns and payments every four months, ending the last sat of June, October and February.

A natural person or company may qualify as a micro business if the qualifying turnover for the year of assessment does not exceed R1 million.

If you registered via the SARS eFiling system, your profile will be activated within 48 hours. If it takes any longer, you are advised to contact SARS.

Otherwise, via manual registration, registration takes anywhere from 10 business days.

After successful registration you will receive a notice from SARS.

Before your VAT number is issued, you are free to continue business operations as you wait for it.

The VAT registration number It is a unique 10-digit number that starts with the number “4”.

When your application is successful, you are issued with this unique identifying number that you can search and check for on the SARS eFiling website.

Once issued, this unique identifying number is expected to be indicated on all your valid tax invoices. More details can be found on the requirements of a valid VAT invoice on the VAT 404 : Guide to Vendors on the SARS website, Page 124 Point 13.3.

VAT 201 returns must be submitted to SARS on a two-monthly basis or 6 times per year together with any payments of VAT due to SARS.

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South Africa Invoicing Requirements from South African Revenue Service (SARS)
All invoices submitted to MarketDirect.co.za must be PDF. IMPORTANT: Most of the required information below is found on your MarketDirect.co.za Purchase Order/Retainer Invoices. Invoices with missing information will risk rejection. If rejected, the ...

How to do your VAT registration in South Africa

How to do your VAT registration in South Africa

What a VAT registration entails

VAT collected by you from providing services

VAT charged to you on business expenses

Criteria and Requirements

How to get started

How to do your VAT registration?

Related Articles

South Africa Invoicing Requirements from South African Revenue Service (SARS)