When does an ecommerce seller have to register for VAT in South Africa?
Short answerFrom 1 April 2026, a business must register for VAT in South Africa once its taxable supplies exceed, or are expected to exceed, R2.3 million in any 12-month period (previously R1 million). Below that, registration is voluntary if you meet SARS's conditions. VAT is calculated on your taxable turnover, not on the net amount Takealot pays out after fees.
Who this is for: South African companies selling online, including on Takealot, and overseas sellers operating through a South African company.
Key points
- Compulsory threshold: R2.3 million of taxable supplies in 12 months (from 1 April 2026).
- Voluntary registration is possible below the threshold if SARS's conditions are met.
- Turnover, not payout: measure sales value, not what lands in your bank after marketplace fees.
- Once registered, you charge VAT on sales, file VAT returns and can claim input VAT, including import VAT on stock.
Steps
- Track rolling 12-month taxable turnover, including all channels.
- Register with SARS when you cross, or expect to cross, the threshold.
- Update your invoices and your Takealot seller details with the VAT number.
- File returns on your assigned tax period.
Common pitfalls
- Using Takealot payouts instead of gross sales to judge the threshold
- Deregistering after the threshold change without checking the VAT that may become payable on assets and stock
- Forgetting sales from other channels
FAQ
What is the VAT registration threshold in South Africa?
R2.3 million in taxable supplies over 12 months, effective 1 April 2026, up from R1 million.
Is the threshold based on Takealot payouts?
No. It is based on the value of taxable supplies (sales), not the net amount paid out after fees.
Can I register voluntarily?
Yes, below the compulsory threshold, provided you meet SARS's conditions for voluntary registration.
Need help with this?
GoMate handles Takealot onboarding, coaching, company registration, trademark, NRCS LOA, VAT, tax and claims.
Talk to GoMate[email protected]Sources
GoMate is an independent seller-services team and is not affiliated with Takealot. Platform and government rules change; check the official sources before acting.