VAT registration for South African freelancers

Compulsory registration

You must register once your taxable supplies exceed R2.3 million in any consecutive 12-month period (raised from R1 million on 1 April 2026 — SARS Budget 2026 FAQs) — or when you have a written contract that will push you over it. Register within 21 days.

Voluntary registration

You may register voluntarily once you've earned more than R120 000 in the past 12 months (raised from R50 000 on 1 April 2026). It can make sense when your clients are VAT vendors who can claim the VAT back.

What changes once you're registered

• Charge 15% VAT on taxable supplies
• Issue full tax invoices with both VAT numbers
• Submit VAT201 returns (usually every two months)
• Claim input VAT on business purchases with valid tax invoices

Keep checking

Thresholds can change in the national budget. Confirm current figures on sars.gov.za before you decide.