Missed the 21-day window after crossing the R1 million compulsory threshold? Here’s what SARS does next and how to limit the damage.
Last updated: June 2026
If you fail to register on time, SARS can backdate your registration to the date you should have registered and assess VAT on your taxable supplies from that point, whether or not you actually charged customers VAT at the time. If you didn’t add VAT to your invoices during the period you were late, you generally still owe that amount out of your own revenue once assessed.
A late payment penalty of 10% of the outstanding tax can apply, in addition to interest calculated on the outstanding amount from when it was originally due. Depending on the specific circumstances (whether the failure to register was a genuine oversight vs a more serious matter), additional understatement penalties may also apply under South Africa’s general tax administration penalty framework.
A late payment penalty and interest generally apply once identified, though the Voluntary Disclosure Programme can provide relief from certain penalties for genuine, proactively-disclosed cases.
Generally yes. Your registration can be backdated, meaning you’re liable for VAT on sales made from that date, effectively absorbing it unless you separately invoice customers for the shortfall.
A SARS mechanism letting taxpayers proactively disclose tax irregularities, including late registration, potentially in exchange for relief from certain penalties that would otherwise apply.
Yes, you can lodge a formal objection through SARS’s dispute resolution process if you believe the penalty is unjustified.
Track your rolling 12-month taxable turnover regularly — our VAT threshold checker can help you monitor this.
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