How to Register for VAT on eFiling? 6 Simple Steps for 2024

A VAT certificate is necessary to prove VAT registered status to vendors or clients. You need to register your business to get a certificate. There is this online platform that can help you register for VAT on e-filing.

Here in this article, we will look at the details about how to register for VAT on e-filing, the registration procedure, requirements, and other relevant information so you can have an idea about how you can apply for a VAT certificate on e-filing. Let us without wasting any more time start with the guide below.

VAT Registration Process: Step-By-Step Instructions

To register for VAT on efiling, what you have to do is to,

Create your e-filing profile or log into the e-filing profile if you have already created one.
Then you have to look at the “SARS Registered Details Functionality”. For the tax practitioners and organizations on the e-filing portfolio, the “Registered Details Functionality” is located under the organization’s menu tab. Whereas for individual portfolios, “SARS Registered Details Functionality” is located on the left menu. You can reach here by selecting home first.
Then you have to click on “Maintain SARS Registered Details” which is located at the left menu.
A screen will open in front of you where you have to click on “I agree to confirm”.
Now click on “My Tax Products”. A list will open. From here, you have to click on “Revenue” on the left menu and then click on “VAT”.
Now select “Add New Product Registration”. This is done to register either a new or additional VAT branch.

Now you have to complete the following to complete the registration procedure.

Registered particulars
Trading as name
Liability date
Select the business activity code
If applicable you have to select the farming activity code
Now select the relevant registration option
Value of taxable supplies
Accounting basis
Backs period
Contact details, physical address, postal address, and banking details.
After providing all the necessary details, you can register VAT on e-filing.

SARS will issue a VAT reference number immediately upon application submission.

VAT Registration For Small Business

It is mandatory and a must for any business to register for VAT only when the income of that business exceeds R1 million after a consecutive 12-month period. It is not necessary that the income exceeds 12 months and then you register your business for VAT.

Instead, if the business is of the type that there is a chance the income will exceed R1 million within 12 months or after 12 months consecutively, you have to register for VAT. Moreover, you also have the option of voluntarily registering your business for VAT if, in the past 12 months, your income has exceeded R50 000.

Moreover, keep in mind that small businesses that are registered as micro businesses under the Sixth Schedule Of The Income Tax Act can also register for VAT. There are chances that they will be elected to submit payments and returns every four months, that is in June, October, and February.

VAT Registration Requirements

To register VAT, a person should be carrying on an enterprise either independently or partly in South Africa where goods and services are supplied.
A person must register for VAT when the taxable supplies value in consecutive 12 months exceeds or is likely to exceed R1 million.

VAT Certificate: What it is and How to Get it?

A VAT certificate is a certificate that claims that your business is VAT-registered. That means you can now charge VAT on taxable goods and supplies and can claim input tax credits. You can get a VAT certificate by following the above-mentioned steps and can download VAT certificates from e-filing but keep in mind it is only valid for a limited period and needs updating.

Well, getting VAT certificates has numerous benefits. Some of them are mentioned below.

You can show your VAT registration certificate to vendors and clients to prove your VAT registration.
You can use this certificate in many scenarios, particularly when onboarding new suppliers and as proof of VAT registration.
Moreover, you can also use this certificate to claim VAT refunds at airports and ports when moving goods from South Africa to other countries
It can also be used for administrative purposes, particularly when it comes to applying for office space or opening a bank account.

Moreover, keep in mind it would be better for you to download the VAT certificate at the beginning of every tax year to make sure it is valid. Keep an eye on the validity date that is printed on the certificate and check for the expiration before time.

Furthermore, you can follow the following steps to get an updated copy of your certificate in case it has expired or the expiry is near.

You can simply log into the e-filing platform.
Click on VAT Registration Details and download the VAT certificate.
The best thing is downloading the VAT certificate from e-filing is completely free of cost.

Can I use the same VAT certificate for multiple years?

No, you cannot use the same certificate for multiple years because it has expired. These are valid until dates and expiry details are written on the VAT certificates which means you have to update your certificate before it expires to keep it updated and useful. Moreover, it is a must to get a fresh and upgraded certificate every year from e-filing to make it valid.

How can you use a VAT certificate?

You can use a VAT certificate as proof of VAT registration and claim VAT refunds. You can also use it for general administration purposes and can use it when onboarding new suppliers, so they can verify your registration details of VAT.

What is the cost of a VAT certificate?

The best thing about your VAT certificate is that you don’t have to pay for it when downloading it from e-filing. It is free of cost and you can download it every year to keep it valid and useful.

Registering for VAT on e-filing is easy and quick. You can simply download the VAT certificate from e-filing which makes the VAT registered business operations easy, quick, and uninterrupted.

Moreover, you have to keep an eye on the expiry date to make sure that the certificate you are using is updated and fresh. This also minimizes the chances of invalid VAT claims and makes sure that the working and operations of your business are all smooth and easy.