Dear reader

Let’s be honest, in 20 years of working with Vat, I’ve came to the conclusion, that it has never been easy to get a new Vat number from SARS!

Getting a Vat number is no quick fix!
While SARS tried to fix this a few years ago in that it claimed you can get a Vat number “over the counter”, it soon realised the error of its ways. Fraudulent businesses popped up, together with fraudulent Vat registrations! And SARS had no control. In order to protect the fiscus, it had to bring in more restrictive measures.  

Get inside info and top tips on how to get your Vat number
I’ve tackled the issue with SARS many times since then. So here are the ins and outs of registering for Vat and avoiding frustration!

10 steps to follow to get your Vat number quickly and easily

Step #1: Complete the VAT 101 form
Apply for registration long before you start trading! If you’ve started thinking of opening a business, and you suspect you’ll turn over R1 million in your first year (about R84 000 a month). Or if you have a contract that’ll provide this turnover, then fill in the VAT 101 form, to register for Vat. Be sure to attach all the documents the VAT 101 asks for! 

Step #2: Visit SARS personally
Take the form and drop it off- yourself- at a SARS client service centre. Make sure your forms are date-stamped by the staff there, and make copies of everything.

Step #3: Meet your TPS
At the SARS Client Service Centre, you’ll meet with a Taxpayer Service Agent (“TPS”) who’ll go through the form with you. He’ll also interview you about your businessThe TPS agent has a questionnaire for you to fill in too– so it’s important that you, or someone who knows all about the business, takes in the VAT 101 form and sits with the TPS agent to complete these interviews/questionnaires.

Step #4: It’s time for the risk analysis to be done
At this stage, SARS then screens your forms and interview/questionnaire responses and carries out some type of risk analysis.

Step #5: Get the results of your risk analysis
Depending on the outcome of the risk analysis, the VAT 101 can be indicated for outreach – this means it will be forwarded to a SARS team who will physically visit the business premises as shown on the VAT 101, to verify that business activities are iactually taking place. At the same time they’ll verify more details such as the business addresses, etc.

Important: Not all VAT 101 applications are subject to this outreach.

Step #6: Use slow-mail if you can’t get to SARS to drop the Vat 101 off
If you are physically unable to take the VAT 101 into a SARS office, e.g because you’re too far away from it, then you can post it, together with the supporting documentation. But be aware that you’ll wait longer to get your Vat number, this way.

Step #7: 21 is your lucky number
SARS will attempt to keep within the 21 working days waiting period for issuing a Vat number.

Step #8: Does your foreign business need to be registered for Vat?
If the business is a foreign one, operating an enterprise in South Africa and must be Vat registered, it also needs a local representative who is familiar with the business. Make sure you hire the right representative.

Step #9: Across borders in South Africa
If your business is located out of the town where you live (e.g you live in Pretoria but your business is in Cape Town) you can still take your VAT 101 in to the Pretoria SARS office and meet with a TPS agent there. They’ll then merely contact the Cape Town office with your details and indicate if an outreach is necessary – which the Cape Town office will then carry out. Obviously you’ll be registered for Vat with the Cape Town office. 

Step #10: The use of biometric data?
At this stage, even though Vat Law provides for it, no fingerprints or retina scans are being done with Vat registration applications. So don’t worry about this yet.

As you can see, even though we’ve given you the simplest step-by-step to follow, this is a complex process. Avoid frustration and delays - do this on time, so you don’t have to rush things when you get busy with your business.

Till next month!

Dee Bezuidenhout

Practical Vat Loose Leaf author

P.S. If you need a Vat consultant, email Lenell. She has my details and she’s happy to pass them on to you.

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