Why do government tenders and large corporates require VAT registration?

Being VAT registered proves commercial legitimacy and allows large corporate clients to claim input tax deductions on your invoices.

SARS & Tax

6 min read Updated 2026-06-18

SARS VAT Registration Requirements: Voluntary vs Mandatory Thresholds

How to register your business for Value-Added Tax (VAT), claim input VAT, and prepare for SARS verification audits.

Published by SwiftCIPC Tax Specialists

Mandatory VAT registration applies when annual taxable turnover exceeds R1 million in a 12-month period.
Voluntary VAT registration is permitted once your business exceeds R50,000 in past 12-month turnover.
VAT registration allows you to legally charge 15% VAT and claim input VAT back on commercial business expenses.
SARS requires stamped business bank letters, signed commercial leases, and proof of customer invoices.

• Mandatory VAT: Compulsory if total value of taxable supplies exceeds R1 million within 12 consecutive months.

• Voluntary VAT: Allowed if total turnover has reached at least R50,000 within the previous 12 months, or under contractual commitments.

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