VAT Registration
“Every problem is a gift—without problems we would not grow.”
Anthony Robbins
The new VAT registration demystified
As of 11 May 2023, SARS has introduced a stricter VAT registration process in response
to a rise in suspicious VAT registrations. The new process aims to combat fraud and
protect the integrity of the VAT system. Here is a breakdown of the new process:
Important business functions Accounting officers perform
- Financial Reporting (IFRS and IFRS for SME) that is consistent and transparent and enables the user to make informed decisions.
Financial Reporting (IFRS and IFRS for SME) includes:
– Statement of Financial position
– Statement of Comprehensive Income
– Statement of Changes in Equity
– Statement of Cash flow
- Analysis of Financial Information to further business efficiency by:
– Identifying the strengths and weaknesses of an entity
– Evaluating internal controls and processes
– Identifying trends
– Implementing Accounting Software or management Systems
- Draughting of Annual Budgets and Cashflow Forecasts to assist entities in reaching their full potential
- Business Valuations to determine the economic value of an entity, covering all aspects of value with supporting documentation.
- Management Accounts can be prepared either monthly or quarterly and provides the user with a clear insight into the financial trading position of an entity.
Management Accounts will enable the user to:
– Make informed decisions based on actual, recent information
– Constantly and effectively measure the performance of an entity
– Gain more control over cash flow
– Detect fraudulent activities
– Minimise annual accounting fees


Important points to note:
- VAT registration will only be approved once SARS is satisfied with the application’s
legitimacy. - The new process was implemented on 11 May 2023. Application submitted before
this date will follow previous processing rules. - Not all applicants will be required to visit a SARS branch.
- The new VAT application process is not as stringent as initially anticipated.
SARS acknowledges that these measures will inconvenience honest taxpayers and
apologizes for any inconvenience caused. However, due to the prevalence of fraud, SARS
emphasizes the importance of conforming to the new VAT registration process. By
implementing these measures, SARS aims to safeguard the VAT system’s integrity and
prevent the misuse of taxpayers’ funds through illegitimate VAT refunds. SARS
appreciates the co–operation of honest taxpayers in combatting white–collar criminal
activities.- VAT registration will only be approved once SARS is satisfied with the application’s
Adriana Taljaard is a recognised member of the professional body SAIPA allocating a designation of Professional Accountant (SA).
Membership conditions require relevant knowledge in accounting, tax and business management and enforces a strict code of conduct.Step 1 Application submission
Applicants should submit their VAT registration applications via efiling provided they are
already registered for another tax, such as corporate income tax.Step 2– Supporting documents
SARS will issue a letter to the applicant, specifying the supporting documents required for
validation of the registration. This letter will have a case number.Step 3 – Submission of documents
All the necessary supporting documents must be submitted via Sars Online Query system
(SOQS) within 21 business days. The case number supplied by SARS must be used to
submit documents via SOQS.
Failure to submit the documents within this timeframe will result in the case being closed
automatically, no VAT number being issued, and a Notice of Rejection letter being sent to
the applicant.Step 4: document Validation
SARS, will employ artificial intelligence to analyse the submitted documents. If there are
no discrepancy, SARS may accept the application, issue a VAT number, forego a physical
interview with the applicant (Public Officer of the Company).
However, if any discrepancies are identified from the source documents, SARS will
request a physical interview. If the applicant is registered for another tax, then a tax
practitioner with a valid POA can act as a proxy for the applicant.
If it is the applicant’s first–time registration, the Public Officer of the company is expected to
attend the interview at SARS branch nearest to the applicant and provide detailed
information about the business.Step 5: meeting with SARSApplicants who have discrepancies in their source documents may be invited to a meeting
with SARS. For in–person meetings at a SARS branch, applicants must pre–book an
appointment on the SARS website.by clicking on the “Book an Appointment” icon. A
separate booking icon exclusively for VAT registration may be made available within 48
hours.