What is new?
7 December 2020 – VAT enhancements were implemented
As part of the VAT Refund Relief for Covid-19, an additional enhancement has been implemented on eFiling, which allows the VAT Control Table to be visible for all users. The VAT Control Table will display returns for the last 5 years and 1 year into the future. For example, if the current date is July 2020, then the Table will display past returns up to August 2015, and one year into the future to June 2021.
The VAT201 declaration form on eFiling has been converted from Adobe Flex to HTML5 format for better user experience and compatibility.
See the updated Guide for completing the Value Added Tax VAT201 Declaration.
1 June 2020 – Payment of VAT liability declared in VAT 215 and VAT 216 records
The payment of the VAT liability declared in the VAT 215 and VAT 216 records must be made on
eFiling by the following persons:
In the case of the VAT 215 record, the recipient (where the recipient is not a registered vendor) of imported services (as defined),
In the case of the VAT 216, the seller of goods, in relation to goods sold in satisfaction of debt envisaged under section 8(1) to pay an amount of VAT to SARS.
In terms of section 55 of the VAT Act, read with section 29 of the Tax Administration Act, the VAT 215
and VAT 216 records and the relevant invoices or tax invoices (whichever are applicable) are required
to be retained by the client as relevant material.
25 May 2020 – Immediate allocation of a new VAT number upon application
SARS will issue a VAT reference number immediately to all applicants who submitted through eFiling or walk-in channel, if no risk has been identified. The requested supporting documents can be submitted through eFiling, SARS website online query system or walk-in channel, latter by appointment only. See the updated guide for info.
18 May 2020 – COVID-19 VAT Refund Relief for Vendors
See our list of FAQs.
28 March 2020 – VAT vendors can now request and obtain a VAT Notice of Registration on eFiling if they are registered on SARS eFiling:
Follow these easy steps:
1. Login to SARS eFiling
3. Go to the Organizations main menu
4. Click SARS Registered details on the side menu
5. Select Notice of Registration
6. Select VAT
Please note that you must be registered on SARS eFiling in order to use this service.
9 September 2019 – New VAT216 form available
A new VAT216 form, Record in respect of goods sold towards satisfying a debt of the owner of the goods, has been published and should be completed and retained for all payments related to goods sold to satisfy the debt of the owner of the goods, as envisaged in section 29 of the Value-Added Tax Act, 1991.
The VAT216 form is updated to automatically apply the applicable tax fraction to the selling price, inclusive of VAT, dependent on the date of the sale. For example, if goods were sold before 1 April 2018, the tax fraction of 14/114 will be applied.
Set-off of refunds between main account and sub accounts for VAT
SARS has implemented an improved VAT refund process in line with legislative changes which saw the new section 50(70) incorporated into the VAT Act No. 89 of 1991.
From September 2019, taxpayers will be able to use a VAT refund from the main account of an enterprise to pay the VAT debt of another sub-account or branch of the enterprise.
If you have a VAT refund due on the main or sub-account, it can be used as follows:
- The main enterprise can set-off an outstanding tax debt of another branch
- The branch account can be set-off against an outstanding tax debt of the main enterprise or an outstanding tax debt of another branch.
Once the set-off has been successfully completed, a Notice of Refund VAT222 will be issued indicating the tax period(s) of the payment, VAT registration number, tax debt to be paid, refund set-off, and the account reference numbers from which the refund was made.
21 February 2018 – Budget 2018 announcement
VAT is now levied at the standard rate of 15% on the supply of goods and services by registered vendors. The tax rate was 14% until 31 March 2018.
A vendor making taxable supplies of more than R1 million per annum must register for VAT. A vendor making taxable supplies of more than R50 000 but not more than R1 million per annum may apply for voluntary registration. Certain supplies are subject to a zero rate or are exempt from VAT.
- Pocket Guide on the VAT rate increase on 1 April 2018
- VAT Frequently Asked Questions: Increase in the VAT rate
- 27 March 2018 – Media Release on the VAT rate increase
- VAT letter for category B, D & E vendors
- VAT letter for category A, C and e-commerce suppliers
- VAT rate change – how to complete the VAT201
These documents can still be relied upon, and reference to the 14% VAT rate must be substituted with the increased rate of 15% where applicable and read within the context of the reference.
What is VAT?
Value-Added Tax is commonly known as VAT. VAT is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services. These businesses become vendors that act as the agent for government in collecting the VAT.
VAT is charged at each stage of the production and distribution process and it is proportional to the price charged for the goods and services.
Who should register for VAT?
When should I submit returns and make payments?
|Payment method||Return due date||Payment due date|
|Payments at ABSA, Albaraka Bank Limited, Access Bank (previously Grobank), FNB, HBZ Bank LTD, Nedbank and Standard Bank.||25th||25th|
|Electronic Fund Transfers (including internet banking)||25th||25th|
|eFiling of return and payment via either SARS eFiling or Electronic Funds Transfers (internet banking)||Last business day||Last business day|
Top Tip: On 19 October 2012, SARS clarified in a notice that vendors who use eFiling may continue to submit their VAT declarations on the 25th of the month. The benefit of no interest, penalties or prosecution will remain effective if the declaration and payment are submitted via eFiling (or EFT) on or before the last business day of the month.