VAT101 — The Complete Guide to VAT Registration
The VAT101 is the application you submit to register as a VAT vendor. This guide explains the new, higher 2026 registration thresholds, the difference between compulsory and voluntary registration, the strict 21-day deadline, and exactly how to apply.
Both VAT registration thresholds increased substantially from 1 April 2026
Following the 2026 Budget Speech, the compulsory threshold rose from R1 million to R2.3 million, and the voluntary threshold from R50,000 to R120,000. If you registered (or considered registering) before this date based on the old figures, your position may have changed.
Source: SARS — Value-Added Tax page; SARS Budget 2026 FAQWhat is the VAT101?
The VAT101 is the Value-Added Tax Registration Application — the form a person or business completes to apply to become a registered VAT vendor with SARS.
Source: SARS — Register for VAT pageThe VAT101 is sometimes referenced alongside the VAT102 (a related registration form) — together, these are collectively referred to as "the Application" in SARS's own guidance.
Source: SARS — VAT-REG-02-G01 Guide for Completion of VAT ApplicationCompulsory vs. voluntary registration
Compulsory registration
You MUST register if:
- The value of taxable supplies made in any consecutive 12-month period exceeded, or is likely to exceed, R2.3 million; or
- Under a written contractual obligation, the value of taxable supplies you'll make in a 12-month period will exceed R2.3 million
Voluntary registration
You MAY register if:
Your taxable supplies are below R2.3 million, but have (under certain circumstances) exceeded R120,000 in the past 12 months — or are reasonably expected to in the next 12 months, or you have a written contractual obligation to do so, or you've acquired finance from certain specified sources.
Source: SARS — Register for VAT page; VAT-REG-02-G01 Guide for Completion of VAT ApplicationBoth thresholds increased on 1 April 2026:
| Registration type | Old threshold | New threshold (from 1 April 2026) |
|---|---|---|
| Compulsory | R1 million | R2.3 million |
| Voluntary | R50,000 | R120,000 |
Voluntary registration doesn't cancel automatically:
If your taxable supplies later fall below R120,000, SARS will notify you of its intention to cancel — your registration isn't cancelled automatically without that step. If you agree, SARS cancels from a future tax period and tells you your final period and last-return obligation. If you disagree, you can object using the ADR1 form.
You must keep charging VAT until it's actually cancelled:
Even after a cancellation notice, you must continue charging VAT on taxable supplies and submitting VAT201 returns, right up until cancellation actually takes effect.
The 21-business-day deadline
If compulsory registration applies to you, you must apply within 21 business days from the date the R2.3 million threshold is, or will be, exceeded.
Source: SARS — Register for VAT pageNon-resident electronic service suppliers:
Compulsory registration applies at the end of the relevant month in which their total taxable supplies exceed R2.3 million. An intermediary may register and account for VAT on their behalf instead.
If you exceeded the threshold in the past but never registered
SARS may backdate your registration to the date you became legally liable — which can result in penalties and interest. If this applies to you, SARS specifically encourages approaching the Voluntary Disclosure Unit to regularise your position.
Source: SARS Budget 2026 FAQBackdating your registration
Compulsory registration — backdating IS possible:
- Up to 6 months from the date the R2.3 million threshold was exceeded: this can be done directly on eFiling (via RAV01)
- More than 6 months back: you'll need to make an appointment at a SARS branch, with supporting documents such as financial statements, signed contracts, or invoices issued
Voluntary registration — backdating is NOT allowed
Your VAT liability date is set according to the date of application — backdating a voluntary registration is not permitted, unless you provide SARS with supporting documents justifying a specific backdating request.
Source: SARS — Register for VAT pageThe liability date has its own limits:
Your VAT liability date must never be before 1 September 1991, and must never be more than 3 months in the future.
How to apply and submit
Apply via:
- SARS eFiling (Preferred), using the RAV01 functionality entirely online; or
- SARS Online Query System (SOQS), where you can upload a scanned, completed VAT101 PDF; or
- Submitting the physical VAT101 form in person at a SARS branch (appointment required).
An interview may be required:
If SARS indicates that an interview is required, you'll need to complete the full VAT101/VAT102 Application in that context specifically.
A more transparent process since December 2025:
Since 8 December 2025, if your application doesn't meet the registration requirements, SARS service consultants can now select specific, applicable rejection reasons — giving you clearer information about exactly why, rather than a generic decline.
Foreign suppliers of electronic services — a different path:
Foreign suppliers (and intermediaries) complete and sign the same VAT101, but email it with supporting documents to a dedicated SARS address, then register separately on eFiling to file VAT201s and pay from outside South Africa.
RAV01 — registration and amendments guide →
Completing the form correctly (Manual Submissions)
If you are downloading the PDF to submit manually, follow these strict formatting rules:
- Complete the form in English (translate any non-English supporting documents first)
- Print clearly, using blue or black ink only
- Use BLOCK LETTERS, one character per block
- Place an "X" in the relevant choice blocks
- Initial any alterations you make
Common Pitfall: Banking Details
Ensure that the banking details provided exactly match the registered name of the business applying for VAT. SARS regularly rejects manual and online VAT applications due to banking detail mismatches.
Full and accurate disclosure:
You (or your representative handling your VAT affairs) are obliged to make a full and accurate disclosure of all relevant information.
No Power of Attorney for signing
A Power of Attorney is not accepted for the purposes of actually signing the VAT101 — it must be signed by you, or by the genuine representative handling your VAT affairs.
Source: SARS — Supply of Electronic Services by Foreign Suppliers guide; VAT-REG-02-G01Supporting documents — copies are fine:
Where copies of documents are required, they do not need to be certified copies.
Accounting basis — most vendors use Invoice Basis:
Vendors generally account for VAT on the Invoice Basis. The Payment Basis is only available if you meet specific prescribed requirements.
Need help?
SARS Contact Centre: 0800 007 277 — or consult the VAT 404 Guide for Vendors.
Frequently Asked Questions
From 1 April 2026, the compulsory registration threshold is R2.3 million (up from R1 million), and the voluntary registration threshold is R120,000 (up from R50,000), following the 2026 Budget Speech.
21 business days from the date the R2.3 million threshold is, or will be, exceeded.
For compulsory registration, yes — up to 6 months on eFiling, or further back at a SARS branch with supporting documents. For voluntary registration, backdating is not allowed; your liability date is set from your application date, unless you provide documents justifying an exception.
No. If your taxable supplies fall below R120,000 in the preceding 12 months, SARS will notify you of its intention to cancel — it isn't cancelled automatically. You can agree (and receive your final tax period) or object using the ADR1 form. You must keep charging VAT and submitting VAT201 returns until cancellation actually takes effect.
Via SARS eFiling, using the RAV01 functionality, or by submitting the VAT101 form at a SARS branch.
Yes. These are separate systems, and you can be registered for Turnover Tax while also being VAT-registered, whether voluntarily or because you've exceeded the VAT threshold.
Related guides and tools
Sources and references
All VAT registration information on this page is sourced from, or verified against, the following official and authoritative references:
- SARS — Value-Added Tax — sars.gov.za/types-of-tax/value-added-tax/
- SARS — Register for VAT — sars.gov.za/types-of-tax/value-added-tax/register-for-vat/
- SARS — Guide for Completion of VAT Application (VAT-REG-02-G01) — SARS Publications (Search VAT-REG-02-G01)
- SARS — Supply of Electronic Services by Foreign Suppliers (VAT-REG-02-G02) — SARS Publications (Search VAT-REG-02-G02)
- SARS — Tax Exempt Institutions — sars.gov.za/businesses-and-employers/tax-exempt-institutions/
Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify whether the thresholds change again.