VAT and PAYE Registration

VAT Introduction and Registration Process

If you are a person who carries on an enterprise and looking for efficient ways your business can pay less tax and also claim back tax on expenses incurred while carrying on trade, then this might be for you. 

The Value Added Tax Act defines a “person” as and includes but not limited to, an individual, a company, partnership, trust fund and a municipality.  

The VAT Act allows for two registrations, a compulsory registration and a voluntarily registration. Where a business’s value of taxable supplies made or to be made, is in excess of R1million in any consecutive 12-month period, then it is compulsory for that business to apply and register for VAT.

In a case where a person feels that they want to register for VAT, then they can voluntarily apply if the value of taxable supplies made or to be made is less than R1 million but has, under certain circumstances, exceeded R50 000 in the past period of 12 months. 

It is imperative to note that for compulsory application, the VAT registration must be made within 21 business days from the date the R1 million is or will be exceeded. 

The VAT registration may be done in two ways; by making a virtual appointment to opt for a telephonic session or video call with a SARS personnel, or through e-filing. is a guide link on steps to follow for registration through e-filing. 

If you are registered for more than one tax type (e.g. Income tax) and you are already registered as an e-filer, then you may register for VAT by completing a Registration, Amendments and Verification (RAV01) form on e-filing. However, if you are not registered for any tax type, then the VAT101 form is applicable to you for registration. 

A certified ID document, certified ID document of tax practitioner (if applicable) and registration documents of the company are required, depending on the nature of the company. 

PAYE Introduction and Registration Process

Employees’ Tax refers to the tax required to be deducted by an employer from an employee’s remuneration paid or payable. This process of deducting or withholding tax from remuneration as it is earned by an employee is commonly referred to as PAYE (Pay-As-You-Earn). 

An employer must register for employees’ tax, SDL and/or UIF with SARS within 21 business days after becoming an employer, unless none of the employees are liable for normal tax. 

In a case where an employer has, for registration purposes, applied for separate registration of branches of the enterprise, each branch is considered to be a separate employer and to register as a branch separately from the main branch, an EMP102e form – Payroll Taxes – Application for Branch Registration must be filled in and sent to SARS 

How to register for PAYE on eFiling | South African Revenue Service ( is a guide link on steps to follow for registration through e-filing.