You must register for VAT once your taxable sales pass R2.3 million in any 12 months in a row. Here is how to check, and how to register.
Short answer
You have to register for VAT once the value of your taxable sales passes R2.3 million in any 12 months in a row, or when you know it will. You then have 21 business days to apply, which you can do on SARS eFiling. Below that line you do not have to register, although you may choose to. Until 31 March 2026 the line was R1 million.
Checked against SARS: Value-Added Tax and SARS: Register for VAT on 15 October 2026.
When do you have to register for VAT in South Africa?
You have to register for VAT when the value of your taxable supplies is more than R2.3 million in any consecutive 12-month period. Taxable supplies are your sales of goods and services that VAT applies to, whether at 15% or at the zero rate.
The South African Revenue Service (SARS) raised this threshold from R1 million to R2.3 million with effect from 1 April 2026. If a page tells you R1 million, it is out of date.
SARS says you must apply within 21 business days from the date the R2.3 million is exceeded, or will be. So if you already know that a large order will take you over the line, do not wait for the money to come in before you act.
Once you are registered, you must charge VAT on the goods and services you sell. That changes your prices, which is why it pays to see the threshold coming.
In South Africa
The standard VAT rate is 15%. Increases to 15.5% and 16% were announced and then reversed, so the rate stayed at 15%. Confirm the current rate on the SARS VAT page before you change your prices.
What counts towards the R2.3 million?
Your sales count, not your profit. Add up the full value of what you sell, before you take off any costs.
Taxable supplies include sales charged at the standard rate of 15% and sales charged at the zero rate. Zero-rated sales still count towards the threshold, even though no VAT is added to them.
Exempt supplies do not count, and neither does income from a hobby. SARS treats these as activities that are not an enterprise, so they do not make you register.
Watch out
The test is any 12 months in a row, not your financial year. A strong few months can take you over the line in the middle of the year, so check the last 12 months every month, not once a year.
How do you check if you are close to R2.3 million?
Each month, add up your sales for the last 12 months, including the month that has just ended. If that total is getting close to R2.3 million, start preparing to register.
A quick guide: R2.3 million over 12 months is about R191,700 a month on average. If your monthly sales are well below that, you have room. If they are near it, or rising, watch the total closely.
Worked example: Thabiso’s electrical business
Thabiso runs a two-man electrical business in Bloemfontein. He charges R375 an hour and bills 114 hours in a typical month.
| Rand | A typical month | Every month like his biggest |
|---|---|---|
| Sales in one month | 42 750 | 69 000 |
| Sales over 12 months | 513 000 | 828 000 |
| Threshold | 2 300 000 | 2 300 000 |
In a typical month he bills R42,750, which comes to R513,000 over 12 months. Even if every month were as big as the month of his largest contract, when he billed R69,000, his sales would reach R828,000 in a year.
Both totals are well below R2.3 million, so Thabiso does not have to register for VAT. Under the old R1 million threshold he was already below the line, and under the new one he has even more room.
Can you register for VAT voluntarily?
Yes, if you meet SARS’s conditions. SARS says it is processing voluntary applications on the increased minimum of R120,000 announced with effect from 1 April 2026, although the regulation has not yet been updated to match.
The other conditions, and the evidence SARS asks for, are set out in its VAT 404 guide. Read them before you apply, and remember that once you are registered you must charge VAT on your sales. Talk to your accountant or a registered tax practitioner if you are unsure whether it suits your business.
How do you register for VAT on eFiling?
Log in to SARS eFiling and open SARS Registered Details. Choose Maintain SARS Registered Details, then add a new VAT registration, which SARS calls the WRAV01. If you are registering as an individual, SARS may ask you to confirm your identity with a facial biometric check.
If you cannot do it online, you can book a virtual appointment through SARS eBooking and give “VAT registration” as the reason.
SARS may issue your VAT number straight away when it sees no risk. If it sends you a Registration Application Review Notice instead, you have 21 business days to submit the documents it asks for, or your application is rejected.
If you are registering because you have passed R2.3 million, eFiling lets you backdate the registration by up to six months. For an older date you need to visit a branch.
What to do next
Sources
- SARS, Value-Added Tax, checked 15 October 2026
- SARS, Register for VAT, checked 15 October 2026
Frequently asked questions
Does the R2.3 million mean my sales or my profit?
It means your sales. SARS looks at the value of your taxable supplies, which is what you sell, not what is left after your costs.
Is the R2.3 million for my financial year or any 12 months?
Any 12 months in a row. Check your sales for the last 12 months every month, because the threshold can be passed at any point in the year.
How long do I have to register once I pass R2.3 million?
SARS gives you 21 business days from the date your sales pass R2.3 million, or will pass it. You can apply on eFiling or through a virtual appointment.
This article is general information, checked against the official sources shown on the date given. It is not legal, tax or financial advice. Rules change, so confirm with the official source or a qualified adviser before you act.