VAT Vendor

What is VAT Vendor?

A business registered with SARS to charge Value-Added Tax on sales.

Think of it like this…

A company that collects VAT from customers, claims VAT on expenses, and pays the difference to SARS.

Why does it matter?

• Required once turnover passes R1 million/year (or voluntarily from R50k/year)
• Allows input VAT claims
• Missing deadlines can lead to penalties

Best practice

Keep a separate VAT bank account to avoid spending tax money owed to SARS.