South African Government

Updated on July 19, 2022

You must register your business for VAT if the total value of your taxable goods and services in a year reaches R1 million (VAT).

A corporation may voluntarily register if its annual income in the preceding 12 months exceeds R50 000.

V.A.T. is an indirect tax on the consumption of goods and services in the economy.

Submit the registration form to your SARS branch within 21 days after attaining R1 million.

A 15% VAT is levied on all goods and services sold by registered merchants. Some products and services are not subject to VAT at all, while others can be exempt.

Cancel VAT registration

If the value of your taxable supplies falls below R1 million or if all of your business activities have ceased, you may request to have your Value Added Tax (VAT) registration cancelled.

If the Commissioner is satisfied that your taxable supplies do not exceed R1 million or that you have ceased operations, your VAT registration will be canceled.

Within 21 days of ending your firm, you must notify the South African Revenue Agency (SARS).

Any outstanding VAT debts owed by your business when it was registered as a vendor will still be your responsibility.

Become familiar with the process of

Become a VAT taxpayer

let go of your membership

Contact SARS.

Register for diesel refund

Tax-registered vendors in one of the following industries are eligible to claim a diesel fuel refund:

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farming, mining, and forestry are all examples of land-based activity.
The diesel you’re claiming must have been purchased and utilized within South Africa’s borders.

You may learn more about diesel fuel refunds by visiting the SARS website or contacting them.

Value-Added Tax Act 89 of 1991

89 of 1991

The Value-Added Tax Act 89 of 1991 intends:

  • to provide for taxation in respect of the supply of goods and services and the importation of goods;
  • to amend the Transfer Duty Act, 1949, so as to provide for an exemption;
  • to amend the Stamp Duties Act, 1968 [repealed in 1009], so as to provide for an exemption from stamp duty and to discontinue the levying of certain stamp duties;
  • to repeal the Sales Tax Act, 1978; and
  • to provide for matters connected therewith.

Amends

Commencement

12 June 1991