VAT Number

A VAT Number is a unique number issued by SARS when your business is registered as a VAT vendor.

VAT (Value-Added Tax) is a 15% tax added to most goods and services in South Africa.

If your business reaches a certain turnover, you’re required by law to register and start charging VAT.

"What does a VAT Number look like?"

It’s a 10-digit number that usually starts with a 4, like:

4XXXXXXXXX

This number confirms that your business is authorised to charge and claim VAT.

"Does my business need a VAT Number?"

You must register for VAT if:

  • Your business earns more than R1 million in total revenue over any 12-month period

You can register voluntarily if:

  • You earn more than R50,000 in 12 months
  • You want to claim back VAT on business expenses (especially if you’re investing in stock, equipment, or services)

"What are the benefits of having a VAT Number?"

Being VAT registered allows you to:

  • Charge VAT on your invoices
  • Claim VAT on qualifying expenses
  • Trade with larger clients or the public sector (many require a VAT number)
  • Appear more credible or “established” to partners, suppliers, or funders

"What happens if I charge VAT without being registered?"

That’s illegal.

If you collect VAT but don’t have a VAT Number, SARS can:

  • Fine you
  • Demand repayment
  • Flag your business as non-compliant
  • Open a tax investigation

Always register properly before charging VAT.

"Do all businesses need to register for VAT?"

No.

If your revenue is under R1 million, you don’t have to register and you shouldn’t charge VAT unless you’ve been officially approved by SARS.

"How do I check if a business is VAT registered?"

You can contact SARS to verify another company’s VAT number.

This is often done during supplier vetting or for tax compliance.

"How do I register for a VAT Number?"

Govchain can help you apply, submit the right forms to SARS, and track your application so you get your VAT Number without the paperwork headache.


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