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South Africa - VAT registration guide

Updated by Christo Pienaar, PKF Octagon

VAT registration threshold – local establishment	VAT registration is compulsory where turnover (ie the value of taxable supplies) exceeds, or is likely to exceed, R1 million in any consecutive 12-month period, or is expected to exceed R1 million in a 12-month period under the terms of a written agreement.

VAT registration threshold – no local establishment	Non-resident suppliers of certain electronic services are liable for compulsory VAT registration at the end of the month in which the total value of taxable supplies exceeds R1 million. �� Note: In South Africa's 2024 Budget Review, the legislature announced its intention to revise the regulations which apply to overseas digital services providers. If these amendments are implemented, B2B suppliers of digital services will no longer be obligated to register as VAT vendors in South Africa. �� Detailed information for foreign suppliers of electronic services on registering for VAT in South Africa is available at: www.sars.gov.za/wp-content/uploads/Ops/Guides/VAT-REG-02-G02-Foreign-Suppliers-of-Electronic-Services-External-Guide.pdf

Voluntary VAT registration	It is possible to register voluntarily for VAT in South Africa if the value