When must my business register for VAT?

From 1 April 2026 SARS applies a R2.3 million threshold: you must register once your taxable sales pass R2.3 million in any 12 months. You can register voluntarily once you pass R120,000, which can help if your customers are VAT-registered businesses.

Checked October 2026 By Erwin Middleton, Founder of J29 About 2 minutes to read Share on WhatsApp

The thresholds

  • Compulsory: once your taxable sales pass R2.3 million in any 12 months. Before 1 April 2026 the threshold was R1 million.
  • Voluntary: you can choose to register once your taxable sales pass R120,000.

Should I register voluntarily?

It can help if most of your customers are VAT-registered businesses, because they can claim back the VAT you charge, and you can claim back VAT on your business purchases.

It can hurt if most of your customers are individuals, because your prices go up by 15% for them. You also take on returns every two months and penalties if you file late.

What changes once you register

  • You charge 15% VAT and issue proper tax invoices.
  • You submit VAT201 returns, usually every two months, by the 25th of the month after the period ends, or the last business day of that month on eFiling.
  • You keep records of every sale and purchase.

You register on SARS eFiling. For the full list of what to file and when, see the compliance checklist, and speak to a registered accountant about your situation.

Do it today

  • Add up your taxable sales for the last 12 months.
  • Check whether most of your customers are VAT-registered businesses.
  • Read the VAT section of the compliance checklist.
  • If you are close to R2.3 million, plan your registration now.
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This answer is general information, written by J29 from the questions business owners ask Ask J29 and checked in October 2026. Fees and rules change, so confirm on the official site before you pay anything.

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