Do I need to register for VAT?
Enter your turnover and find out whether VAT registration is compulsory, voluntary or not yet available, then use the calculator to add or remove VAT at 15%.
- Compulsory registration
- R2 300 000
- Voluntary registration
- R120 000
- Standard VAT rate
- 15%
taxable turnover in any consecutive 12-month period
taxable turnover in the past 12 months
confirmed 17 August 2026
Find out where you stand
The threshold test looks at any consecutive 12-month period, not your financial year, which is why businesses cross it without noticing. Enter your taxable turnover and we will tell you which side of the line you are on and what it means.
What to do next
Thresholds confirmed . Verify against SARS: Value-Added Tax before acting. This tool is guidance, not tax advice.
Add or remove VAT
Work out the VAT on an exclusive amount, or extract the VAT already inside an inclusive one. The rate is editable for zero-rated lines and historical calculations.
- Adds VAT to an exclusive amount
- Extracts VAT using the correct tax fraction
- Shows exclusive, VAT and inclusive together
VAT on an inclusive amount is extracted with the tax fraction, at 15% that is 15/115, not 15% of the total. Getting that backwards is the most common VAT arithmetic error we see on invoices.
What registration actually commits you to
Registration is not a formality. It changes your pricing, your invoicing and your filing calendar permanently. Worth understanding before you choose to register voluntarily.
You charge output tax
Every taxable supply carries VAT from your liability date. Prices, quotes and contracts need reviewing, a price agreed before registration does not automatically become VAT exclusive.
You claim input tax
VAT on qualifying business purchases becomes recoverable, provided you hold a valid tax invoice. Documentation is what makes the claim stand up.
You file VAT201 returns
Most vendors file every two months, larger ones monthly. Returns are due whether or not you traded, and late filing draws penalties and interest.
Your records must support it
Valid tax invoices, and records kept for the required retention period. This is where most VAT audits are actually won or lost.
If registration is compulsory, you have 21 business days. Your VAT liability generally runs from the date the threshold was crossed, not the date SARS processes the application, so registering late does not shorten the period you must account for. That output tax usually cannot be recovered from customers after the fact.
VAT registration questions
The questions businesses ask before registering. If your situation is not covered, ask us: the answer usually turns on what your supplies actually are.
Ask about your situationDo I have to register for VAT?
Registration is compulsory once your taxable supplies exceed the compulsory threshold in any consecutive 12-month period, or where a written contract commits you to exceed it in the following 12 months. Below that, registration is voluntary if you are above the voluntary threshold.
How long do I have to register once I cross the threshold?
You must apply to SARS within 21 business days of first exceeding the compulsory threshold. Your VAT liability generally runs from the date the threshold was crossed, not the date SARS processes the application, so a late application does not shorten the period you must account for.
Is the threshold tested on a financial year?
No. It looks at any consecutive 12-month period, which is why a rolling monthly calculation is safer than checking once a year at year end.
What counts towards taxable turnover?
Taxable supplies, which includes standard-rated and zero-rated supplies, but excludes exempt supplies. Whether a particular income stream counts is a technical question worth confirming rather than assuming.
Should I register voluntarily?
It depends on who your customers are and how much input VAT you carry. If your customers are VAT vendors who claim the VAT back, registering is often neutral for them and recovers your input tax. If you sell to consumers, registering effectively raises your prices or cuts your margin.
What happens if I register late?
SARS can register you from the date the liability arose and hold you accountable for output tax from that date, along with penalties and interest. That output tax often cannot be recovered from customers after the fact, so it comes out of margin.
How often will I file VAT returns?
Most vendors are placed in a two-monthly category, with larger vendors filing monthly. Your category determines the filing months, and SARS confirms it on registration.
Need help registering for VAT? M&J can handle it.
We establish the exact date the liability arose, prepare the application and supporting documents, deal with SARS queries and set up your VAT201 filing so the first return is not a scramble.
- Liability date established before anything is submitted
- Supporting-document pack prepared for SARS
- Filing category and VAT201 process set up from day one
Prefer to talk? +27 87 078 2478
Ask about VAT registration
Tell us your turnover and what you supply. We will confirm whether registration is required and what it involves.
This tool is general guidance, not tax advice. Whether a particular income stream counts as a taxable supply, when your liability date arose and whether voluntary registration suits your business are all fact-specific questions. Thresholds and the VAT rate were confirmed on 17 August 2026. Verify against SARS: Value-Added Tax before acting, and confirm your own position with us or another qualified tax practitioner.