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INSIGHTS

SARS Tightening Protocols on new VAT Registrations
20-March-2024

Almost 84% of all SARS refunds to taxpayers processed in its 2022/23 financial year were in respect to VAT refunds.  Simultaneously, SARS has seen a sharp increase in suspicious registrations, fuelling concerns of VAT fraud.  Amid mounting fiscal pressures from rising national debt levels, SARS has responded by adopting a more circumspect stance with regard to new VAT registrations.

Compulsory vs voluntary registration

  • For any business that makes annual supplies of R1m or more (or R83,333 per month) in any rolling 12-month period, VAT registration is compulsory.
  • A voluntary registration application may be submitted in the case of enterprises that have made supplies exceeding R50,000 in value in the 12 months prior.

What is SARS doing differently for new VAT registrations?

Historically, provided a business met the registration requirements for VAT, SARS would generally grant the registration request.  With the increase in suspicious VAT registrations and concerns of VAT fraud among those refunds processed by SARS, it is now taking a different line for new applications.

Applicants must now expect to be required to appear before SARS to defend the legitimacy of their application. In that presentation to SARS, all necessary documents to substantiate validation must be presented by the applicant.  Registration requires that the following documents be submitted:

  • Acceptance as Public Officer
  • Certified ID of Directors
  • Proof of Address (Company)
  • Proof of Address (Public Officer)
  • Tax compliance for all Directors
  • Signed & completed VAT101
  • CIPC documents – CoR 14.1 and CoR 14.3
  • Bank Statements
  • Proof of Turnover (Minimum of 3 invoices)
  • Appointment of Public Officer

How we can assist you

MMS Cloud Accounting supports SMEs with their business accounting and business compliance matters.  This includes VAT registration for our clients, whether the registration is compulsory or mandatory.  Should you wish to refer your registration to our team, we may be contacted on:

For more details on our monthly accounting packages, refer to the Packages section of our website.