A VAT vendor is any person or business registered for VAT, whether compulsorily (turnover above the statutory threshold) or voluntarily (below the threshold but choosing to register).
What it means
Being a VAT vendor means charging output VAT on taxable sales, being entitled to claim input VAT on business purchases, and filing regular VAT201 returns declaring the net position to SARS.
Where it fits in
Vendor status determines whether a business can issue valid tax invoices and reclaim VAT on its costs at all - a non-registered business charges no VAT and claims none back, simplifying its accounting but forgoing input VAT recovery.
Key rules
- Registered with SARS to charge and claim VAT.
- Registration can be compulsory (above the turnover threshold) or voluntary (below it).
- Must issue tax invoices showing its VAT number.
- Files periodic VAT201 returns declaring output less input VAT.
