AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A South African business must register for VAT once its taxable supplies in any 12-month period exceed, or are likely to exceed, R2.3 million, and must apply within 21 business days of crossing that line, according to SARS's page updated October 2026. Below that, voluntary registration is possible from R120,000 of taxable supplies. Apply on eFiling through SARS Registered Details.
The threshold is now R2.3 million
SARS's VAT registration page, updated on 8 October 2026, says registration is compulsory where the value of taxable supplies in any consecutive 12-month period exceeded, or is likely to exceed, R2.3 million. A written contract that will take taxable supplies over R2.3 million within 12 months also triggers compulsory registration. SARS notes it is administering new applications on the increased threshold; if you read older guides that mention a lower figure, they predate the change.
How to test whether you have crossed it
The test is rolling, not by tax year. At the end of every month, add up taxable supplies for the last 12 months, and look ahead at the next 12.
- Taxable supplies include standard-rated and zero-rated sales. Exempt supplies are not taxable supplies.
- Count the value of the supplies, not your profit.
- Include signed contracts that will be delivered in the coming 12 months.
The deadline
SARS says a compulsory application must be made within 21 business days from the date the R2.3 million is, or will be, exceeded. Compulsory registrations can be backdated up to six months on eFiling. Missing the deadline does not remove the liability: VAT may be due on sales from the date you should have been registered, whether or not you charged it.
Voluntary registration
A business below R2.3 million can choose to register if it meets SARS's conditions. The page refers to a minimum threshold of R120,000 in taxable supplies over the past 12 months (a monthly average of R4,200 for some applicants), and to General Notices R446 and R447 for applicants relying on contracts or expenditure in listed activities such as farming, mining or property development. Voluntary registrations cannot be backdated without supporting documents.
Why register early? You can claim input VAT on your costs, and some corporate customers prefer VAT-registered suppliers. The cost is the admin of returns and the need to add VAT to prices for customers who cannot claim it back.
Registering on eFiling, step by step
- Log on to eFiling.
- Open SARS Registered Details and choose Maintain SARS Registered Details.
- Accept the authorisation statement.
- Choose Add new product registration to register for VAT.
- Complete the VAT section: business activity code, value of taxable supplies, accounting basis and tax period.
- Submit the VAT registration application (WRAV01). Individuals may be asked for facial biometric authentication.
- If SARS issues a Registration Application Review notice, submit the listed documents within 21 business days, or the application is rejected.
SARS does not list every document on the main page, so wait for the review notice and answer it exactly. For backdating beyond six months, SARS mentions financial statements, signed contracts and issued invoices.
For foreign-owned businesses
Have your company's SARS income tax registration, CIPC documents, a South African business bank account and your directors' passports ready before you apply; registering the company itself is covered in SARS registration for a new company. Freelancers with foreign clients should read VAT registration for freelancers with foreign clients.
Common mistakes
- Testing the threshold only at the tax year end. The test is any consecutive 12 months, so check monthly.
- Ignoring signed contracts. A large contract can make you liable before the sales arrive.
- Counting profit instead of the value of supplies.
- Leaving out zero-rated sales, such as exports.
- Waiting for SARS to tell you. Registration is your responsibility, and VAT can be assessed from the date you should have registered.
If you think you have already crossed the line without registering, apply now and ask for backdating within the six months eFiling allows, rather than waiting.
After you register
- Issue valid tax invoices and keep them, with bills of entry and accounting records, for five years; see how long to keep records for SARS.
- File returns for the tax period SARS allocates.
- Check whether services you buy from abroad, such as from Nigerian suppliers, need VAT accounted for: VAT on imported services.
Where Pryme fits
A Pryme Business Account holds NGN, USD, GBP and EUR, not rand, so it suits the part of your business that buys from or sells to Nigeria and other markets. The Finance agent can track a rolling 12-month total of sales recorded in Pryme and flag when it nears a line you set; a person approves anything it prepares.
Questions people ask
What is the VAT registration threshold in South Africa in 2026?
R2.3 million of taxable supplies in any consecutive 12-month period, according to SARS's VAT registration page updated 8 October 2026.
How long do I have to register once I pass the threshold?
SARS says within 21 business days from the date the R2.3 million is or will be exceeded. Compulsory registrations can be backdated up to six months on eFiling.
Can I register for VAT voluntarily as a small business?
Yes, if you meet SARS's conditions, which include a minimum of R120,000 in taxable supplies over the past 12 months for most applicants.
Do zero-rated export sales count towards the threshold?
Yes. Taxable supplies include zero-rated supplies. Exempt supplies do not count.
Sources
- SARS: Register for VAT (updated 8 Oct 2026) · accessed Oct 2026
- SARS: Obligations of a VAT vendor (updated 19 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.