What’s New?
- 8 December 2025 – VAT Registration Process Enhancements
As part of SARS’s commitment to improve taxpayer/trader experience, SARS is pleased to announce certain enhancements to the VAT registration process.
The enhancements are designed to provide applicants with clear, precise communication and ensure transparency and efficiency. Applicants will have certainty and clarity on the requirements and outcome of their VAT registration applications.
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Updated VAT Notice of Rejection:
With effect from 8 December 2025, if a VAT registration application does not meet registration requirements, SARS service consultants are able to select applicable rejection reason(s). The system will generate a customised rejection notice with specific reason(s) for the rejection.
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Improved Process for Requesting Additional/Outstanding Supporting Documents:
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If additional or outstanding supporting documents are required or submitted documents are found to be incomplete, incorrect or outdated, SARS service consultants may engage telephonically with applicants to request the required documents.
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In addition to telephonic engagement, SARS can now issue a formal, tailored letter specifying the additional or outstanding documents needed. Applicants will have five business days from the date of the letter to upload the requested documents. If the required documents are not submitted within this time frame, the system will automatically reject the application. In such cases, a notice of rejection will be issued, stating that additional or outstanding supporting documents were not provided.
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- 10 October 2025 – Latest VAT Connect newsletter
Issue 20 (October 2025) of the VAT Connect newsletter is available. - 20 August 2025 – The first provisional tax payment
- If you are struggling with working out amounts due for provisional tax: Here’s an example of how provisional tax payment is calculated.
- 15 August 2025 – SMME Connect August Edition
- The SMME Connect August edition is now available. In this edition we review the range of special events held nationwide to celebrate the 9th International SMME Day. We also look at Turnover Tax, Provisional Tax and Filing Season 2025.
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15 July 2025 – Township Economies Conference and Expo Focused on SMMEs
SARS will participate in the Township Economic Development Expo, known as i-Kasi economies, from 15–16 July 2025 at the Sandton Convention Centre, Johannesburg. This event targets Small, Medium, and Micro Enterprises (SMMEs) and offers growth and development opportunities.
The theme is “Connecting i-Kasi with Corporate — Empowering Township Industrialists.” The expo aims to:
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- Integrate township businesses into regional and global value chains.
- Create pathways for township manufacturers to connect with corporate buyers and investors.
- Promote tax compliance among SMME taxpayers.
Attendees may visit the SARS stand to access various services and obtain assistance with eFiling.
SMME Newsletters
- For a complete list of the Connect Newsletters, click here.
About Us
This page is dedicated to Small Medium and Micro Enterprises (SMME) Taxpayers.
The SMME Taxpayers is a Division in SARS that represents the needs and interests of this sub-segment in the tax environment. This will be done through:
- Providing Clarity and Certainty to Taxpayers
- Making it easy for Taxpayers
- Detecting and deterring Taxpayers who do not comply
- Working with and through Stakeholders to improve the tax ecosystem.
The purpose of this page is to share current and upcoming work being done to achieve the above mandates. If you are a SMME Trader or Traveller, see our dedicated SMME Traders and Travellers webpage here.
See our SMME video ‘A guide on small business taxes in South Africa’ here.
How to comply as a Small Business?
Complying with your tax obligations as a small business has been made a lot easier over the past few years. Read below for more information:
- If you are starting out and need to register as a company, you will have to contact the Company and Intellectual Property Commission (CIPC), formerly called CIPRO. Please note that Companies are first required to register with the (CIPC) offices before registering with SARS for an Income Tax reference number, click here for CIPC. Once a taxpayer registered with CIPC, SARS will automatically generate an Income Tax reference number. Taxpayer must then register on eFiling to transact electronically.
- See Registering on eFiling and services available online.
- Hot to obtain your Tax Compliance Information: As a Small, Micro or Medium Enterprise (SMME), at some point or another you will be required to provide / confirm / share your Tax Clearance information with another entity. This could be to apply for a tender, new contract, good standing or in respect of Foreign Investment.
- Registering for Turnover Tax. Turnover tax is a simplified tax system for small businesses with a qualifying turnover of not more than R1 million per annum. It is a tax based on the taxable turnover of a business and is available to sole proprietors (individuals), partnerships, close corporations, companies and co-operatives. Turnover tax takes the place of VAT (in the instance that you have not decided to elect back into the VAT system), provisional tax, income tax, capital gains tax, secondary tax on companies (STC) and dividends tax. So qualifying businesses pay a single tax instead of various other taxes. It’s elective – so you choose whether to participate. For Tax Tables see below.
- Registering your business for VAT
- Registering for PAYE, UIF and SDL
- In the case where you are already registered as a company and you meet certain qualifying requirements, you may register as a small business corporation (SBC) in order to get additional tax incentives. One of the incentives for SBCs is a reduced corporate tax rate. Click here to see reduced tax rates for small businesses.
If you have recently registered, please find our welcome pack, in all official languages, with useful information on the tax obligations relating to Small, Micro and Medium Enterprises (SMMEs) and a guide to small business taxes in South Africa:
Quick Tools
Mobile Tax Units
See our schedule for the Mobile Tax Units per region. The Mobile Tax Units webpage will be updated on a regular basis. To see the services Mobile Tax Units offer and the documents you need to take with you, click here.
Upcoming education sessions
See our schedule for the upcoming education sessions per region.
Related Documents
ASPOA – Authority on Special Power of Attorney by Tax Practitioner – External Form
CRA01 – Confirmation of Residential or Business Address for Online Completion – External Form
EMP-REG-03-G01 – Guide for completion of Employer Registration application – External Guide
EMP128 – Confirmation of Partnership – External Form
GEN-ELEC-04-G01 – Guide for completing the Value Added Tax VAT201 Declaration – External Guide
GEN-ELEC-08-G01 – Guide to the Tax Compliance Status functionality on eFiling – External Guide
GEN-PT-01-G01 – Guide for Provisional Tax – External Guide
GEN-PT-01-G02 – How to eFile your Provisional Tax Return – External Guide
IT-ELEC-03-G01-Guide-to-complete-the-Company-Income-Tax-Return-ITR14-eFiling-External-Guide
IT180 – Declaration by Employer to Claim Deduction against Learnerships – External Form
IT3(b) – Certificate of Income Investments Property Rights and Royalties – External Form
IT3(e) – Return of Purchases Sales or Shipments – External Form
IT44 – Extract of Income – External Form
IT77C – Application for registration Company – External form
LAPD-IT-G16 – Basic Guide to Income Tax for Public Benefit Organisations
LAPD-IT-G23 – Guide on the Taxation of Franchisors and Franchisees
LAPD-IT-G30 – Guide on venture capital companies
LAPD-STC-G01 – Comprehensive Guide to Secondary Tax on Companies
LAPD-TAdm-G06 – Quick Guide on Alternative Dispute Resolution
LAPD-TAdm-G13 – Reportable Arrangement Guide
LAPD-TT-G01 – Tax Guide for Micro Businesses
LAPD-VAT-G01 – VAT 403 Vendors and Employers Trade Classification Guide
LAPD-VAT-G04 – VAT 411 Guide for Entertainment Accommodation and Catering
LAPD-VAT-G05 – VAT 412 Guide for Share Block Schemes
LAPD-VAT-G06 – VAT 413 Guide for Estates
LAPD-VAT-G07 – VAT 414 Guide for Associations not for Gain and Welfare Organisations
LAPD-VAT-G10 – VAT 421 Guide for Short Term Insurance
Legal-Pub-Guide-Gen09 – Tax Guide for Small Businesses
Legal-Pub-Guide-IT12 – Guide to the Urban Development Zone Allowance
Legal-Pub-Guide-IT17 – Basic Guide to Section 18A Approval
Legal-Pub-Guide-IT26 – Tax Exemption Guide for Public Benefit Organisations in South Africa
Legal-Pub-Guide-QR01 – Quick Reference Guide – ATR System
Legal-Pub-Guide-TAdm02 – Guide to Advance Tax Rulings
Legal-Pub-Guide-VAT03 – VAT 409 Guide for Fixed Property and Construction
Legal-Pub-Guide-VAT19 – VAT Rulings Process Reference Guide
Legal-Pub-Guide-VAT20 – VAT section 72 decisions process reference guide
Legal-Pub-Guide-VAT420 – VAT 420 – Guide for Motor Dealers
Legal-Pub-Guide-VATRef01 – VAT Reference Guide – Foreign Donor Funded Projects
MPR1 – Mineral and Petroleum Resources Royalty Application Form – External Form
RA01 – Reporting Reportable Arrangements – External Form
RC02 – Application for Certificate of Residence for Persons other than Individuals – External Form
Rev16 – Claim for STT Refund – External form
SPPOA – Special Power of Attorney – External Form
TPPOA – Special Power of Attorney to Tax Practitioner – External Form
VAT215 – Record in respect of Imported Services – External Form
