A business below the compulsory VAT registration threshold can still choose to register voluntarily, provided it meets minimum turnover or documented future-turnover requirements set by SARS.
What it means
Registering voluntarily allows the business to claim input VAT on its purchases from day one, which can be worthwhile for a business with significant upfront costs, at the price of having to charge VAT on its own sales and file returns.
Where it fits in
It sits alongside compulsory, turnover-based registration as the second of the two routes into VAT vendor status - the difference is choice versus obligation, not the resulting compliance burden, which is the same either way.
Key rules
- Available to businesses below the compulsory registration threshold.
- Requires meeting SARS's minimum turnover or documented-intent criteria.
- Grants input VAT recovery, but requires charging output VAT and filing returns.
- A choice, not an obligation, unlike turnover-based registration.
