VAT explained

VAT is the acronym for Value-added Tax. In essence it is the indirect tax on the consumption of goods and services in the South African economy.

Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services.

Official SARS definition

Who should register for VAT?

Any person that does business, may register his or her entity for VAT. Person in this case is not only limited to companies, but can be individuals, partnerships, companies and many other.

If your turnover exceeds R1 million per consecutive 12 month period, it becomes mandatory to register.

More on registering for VAT