VAT Registration

VAT is a consumption tax levied on most goods and services in South Africa.

All companies are required to register for VAT once their turnover has exceeded R1 million in any 12 consecutive month period.

VAT registration can also be voluntary for companies whose turnover is less – see our FAQs below for details.

You cannot charge VAT if you don`t have a VAT registration number as that is fraudulent.

Good to know

You will need to appoint a Public Officer for your company if you have not already done so before we can proceed.

Price : R1990
How long does it take? 14 Days

Call Centre
021 595 4433

Email
info@swiftreg.co.za

WhatsApp
060 070 2089

Frequently Asked Questions

What is VAT?

VAT stands for Value Added Tax and is an indirect consumption tax levied on goods and services in the economy. It is collected by the vendor (you) on behalf of SARS.

When do I need to register for VAT?

It is compulsory to register for VAT once your turnover has breached R1m in any 12 month consecutive period. You can voluntarily register for VAT but only if you have sales of more than R50,000. For the voluntary VAT registration, a minimum of three invoices which total more than R50,000 are required and these amounts must be reflected in your business bank account.

Can I charge VAT if I am not registered?

No! That is fraudulent as VAT is collected behalf of the government and needs to be paid over to SARS.

What happens if I don’t register for VAT?

It is not a good idea to not register for VAT once your turnover breaches the R1 million per annum threshold as there are stiff penalties which will be levied. These include the following: a 10% penalty of the amount of the VAT not paid as well as interest at the prescribed rate on the amount of VAT not paid and that just for starters.

How much is VAT?

Currently VAT is levied at 15% of the good and services supplied by the VAT vendor.

What is a Public Officer?

The Public Officer for a company is the person who is responsible for all matters relating to SARS and the company’s representative for SARS. In May 2021, SARS introduced tighter measures for companies interacting with SARS and will no longer process any SARS services for companies with no Public Officer appointed.

What is SARS?

SARS is the South Revenue Service commonly known as the taxman, is out tax collection authority. It is a government agency which is responsible for administrating the country’s tax collection and administration.

Is my Tax Registration Number also my VAT number?

No, Your Tax number is your income tax registration number and different from a VAT registration number which needs to be applied for.

My supplier says I need to be VAT registered but I don’t have the turnover. What now?

Your supplier is misunderstanding how VAT works. They can claim the VAT back from SARS if you are VAT registered. However, you would need to add VAT to current prices thereby increases them 15%. So your supplier is getting the same price without the hassle of claiming the VAT back. They are effectively seeing your price and wanting a 15% discount.

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