VAT registration, VAT returnsand EMP201 payroll submissions
From 1 April 2026, a South African business must register for VAT once its taxable supplies exceed, or are likely to exceed, R2.3 million in any 12-month period, up from R1 million. Voluntary registration is possible above R120,000. N&V registers businesses for VAT and PAYE, and files VAT201, EMP201 and EMP501 returns on time.
Source: SARS, "Register for VAT" and "Budget 2026 FAQs", checked 30 September 2026.
The numbers that matter
- R2.3mCompulsory VAT registration threshold (from 1 April 2026)
- R120kVoluntary VAT registration threshold
- 7 daysEMP201 due after month-end
- 21 daysBusiness days to register for PAYE after becoming an employer
SARS figures, not N&V performance claims. Source: SARS, VAT and PAYE registration.
What we handle
VAT and payroll tax, from registration to the last reconciliation.
VAT registration
We check whether you must or should register, prepare the application on eFiling and deal with SARS's verification requests.
VAT201 returns
Output and input VAT calculated from your records and filed with payment by the due date for your VAT period.
VAT deregistration
Below R2.3 million and considering cancelling? We work out whether it makes sense, including the VAT due on assets you hold.
PAYE, UIF and SDL registration
Registered as an employer with SARS within the 21-business-day window, including UIF and the Skills Development Levy where required.
EMP201 every month
PAYE, UIF and SDL declared and paid within seven days after month-end.
EMP501 reconciliations
Interim and annual reconciliations, with IRP5 and IT3(a) certificates that match what you paid.
How to register for VAT in South Africa
Check whether you must register
Add up your taxable supplies for the past 12 months and the next 12. If either exceeds R2.3 million, registration is compulsory. Above R120,000, it's optional.
Gather your supporting documents
SARS lists the required documents in its guide VAT-REG-02-G01. Missing documents are the most common cause of delays.
Apply on SARS eFiling
Submit the VAT registration application through eFiling, or book a virtual appointment with SARS.
Respond to any review notice
If SARS needs more information, it issues a Registration Application Review Notice. You have 21 days to submit what it asks for.
Start charging VAT from your registration date
Update your invoices, pricing and accounting software, and diarise your first VAT201.
Source: SARS, "Register for VAT", checked 30 September 2026.
Registering voluntarily: when it helps and when it doesn't
Voluntary registration lets you claim back VAT on your business costs, and it can make sense when most of your customers are VAT vendors themselves: for them, your VAT is a cost they claim back. It usually doesn't make sense when you mostly sell to the public, because your prices go up by the VAT and your customers can't claim it back.
It also brings admin: regular VAT201 returns, VAT-compliant invoices and records SARS can audit. We'll run the numbers for your business before you decide.
Frequently asked questions
You must register for VAT when your taxable supplies over any 12-month period exceed, or are likely to exceed, R2.3 million. That threshold applies from 1 April 2026; before that it was R1 million. Businesses with taxable supplies above R120,000 may register voluntarily, which can suit businesses whose customers are VAT vendors themselves. Source: SARS, "Register for VAT".
From 1 April 2026, the compulsory VAT registration threshold in South Africa is R2.3 million in taxable supplies over 12 months, up from R1 million. The voluntary registration threshold rose from R50,000 to R120,000. The Turnover Tax ceiling for micro businesses also increased to R2.3 million. Source: SARS, Budget 2026 FAQs.
Yes. SARS allows a vendor to apply to cancel its registration if taxable supplies will be less than R2.3 million in any 12-month period. Think it through first: on deregistration you must pay output VAT on certain assets you still hold, and you lose the right to claim input VAT. If your customers are mostly VAT vendors, staying registered may be better.
The EMP201 is the monthly employer declaration to SARS covering PAYE, UIF and Skills Development Levy deducted from employees' pay, plus any Employment Tax Incentive claimed. It must be submitted and paid within seven days after the end of the month in which the deductions were made. If that day falls on a weekend or public holiday, pay on the last business day before it.
An employer must register with SARS for PAYE within 21 business days of becoming an employer, unless none of its employees are liable for normal tax. Employers liable for UIF contributions must also register for UIF. The Skills Development Levy of 1% of payroll becomes payable once your total annual remuneration is expected to exceed R500,000.
The EMP501 reconciles your monthly EMP201 payments against the IRP5 and IT3(a) certificates issued to employees. For the 2027 tax year, the interim reconciliation covering 1 March to 31 August 2026 must be submitted between 21 September and 31 October 2026. The annual reconciliation, covering the full year to 28 February 2027, is due between 1 April and 31 May 2027.
Related services
Bookkeeping
Monthly bookkeeping and bank reconciliations in cloud software, reviewed by a CA(SA).
Business tax
ITR14 company returns, provisional tax, SBC and turnover tax decisions, and tax compliance status.
Owner-managed SMEs
Bookkeeping, VAT, payroll, annual financial statements and tax for owner-managed small businesses.
VAT and payroll, off your desk
Tell us your turnover, how many people you pay and your current VAT status. We'll tell you what you need to register for and quote the monthly submissions.