Quick answer: From 1 April 2026, you must register for VAT when your taxable supplies exceed R2.3 million in any 12-month period. The previous threshold was R1 million. You may register voluntarily once your taxable supplies exceed R120,000 in the past 12 months (previously R50,000). Apply for compulsory registration promptly once you meet SARS's registration requirements. You apply to SARS through eFiling.
Compulsory vs voluntary registration
| Compulsory | Voluntary | |
|---|---|---|
| Threshold (from 1 April 2026) | Taxable supplies exceed R2.3 million in 12 months | Taxable supplies exceed R120,000 in the past 12 months |
| Previous threshold | R1 million | R50,000 |
| Deadline | Apply when the statutory registration requirements are met | When you choose |
Taxable supplies include standard-rated and zero-rated sales, not exempt supplies.
Should you register voluntarily?
Voluntary registration can make sense when:
your customers are mostly VAT-registered businesses that can claim back the VAT you charge;
you have large VAT-able expenses, such as equipment or stock, and want to claim the input VAT;
big clients or tenders expect their suppliers to be VAT registered.
It's usually not worth it when your customers are mainly consumers. Adding 15% VAT makes you more expensive, and you take on extra admin. Get advice before you register, because it's hard to undo quickly.
Step-by-step: how to register for VAT
Check that your SARS profile is in order: your registered details, contact details and bank account. See how to change your bank account on eFiling.
Gather supporting documents, typically:
the ID of the registered representative or owner;
company registration documents (for a company);
a bank statement or bank letter in the business's name;
proof of address;
proof of turnover, such as invoices, contracts or financial statements showing your taxable supplies.
Apply on eFiling. If you're already registered for another tax type, you can usually apply through the RAV01 (Maintain SARS Registered Details). Otherwise, SARS provides the VAT101 route.
Respond to SARS's verification. SARS may ask for more documents or a virtual appointment.
Receive your VAT number and your VAT category, which sets how often you file.
After you're registered
Charge VAT at 15% on standard-rated supplies from your registration date.
Issue valid tax invoices.
File VAT201 returns and pay by the due dates.
Keep proper records of sales, purchases and tax invoices, because you can only claim input VAT with valid documents.
If you registered only because you passed R1 million
If your business was registered for VAT only because it passed the old R1 million threshold, and your taxable supplies stay below R2.3 million, it may now be possible to deregister. Weigh the pros and cons with your accountant first.
Frequently asked questions
What is the VAT registration threshold in 2026?
R2.3 million in taxable supplies over 12 months for compulsory registration, from 1 April 2026.
Can I register for VAT if my turnover is under R2.3 million?
Yes, voluntarily, once your taxable supplies exceed R120,000 in the past 12 months, subject to SARS's requirements.
How long does VAT registration take?
It depends on SARS's verification. Complete, clear supporting documents are the best way to avoid delays.
What happens if I don't register when I should?
SARS can register you retrospectively, and you'll owe VAT on past sales, plus penalties and interest.
Get VAT registration right
Smartbook registers businesses for VAT, helps you decide whether voluntary registration makes sense, and handles your VAT returns and bookkeeping every month. See our VAT registration service or email hello@smartbookie.co.za.
Last reviewed: 2 October 2026. General guidance, not tax advice. The verified thresholds apply from 1 April 2026. Confirm SARS's current application requirements before applying.