In short
- The VAT201 is the return you submit to SARS declaring output and input tax for a period.
- Most small vendors are on a two-month cycle.
- It is filed through eFiling, and payment is due with the return.
- Late submission and late payment carry separate consequences.
- SARS, Value-Added Tax
The VAT201 return is the declaration a registered vendor submits for each tax period. It sets out the VAT you charged, the VAT you are claiming back, and the difference you either pay to SARS or are refunded.
What goes on a VAT201 return
| What it covers | |
|---|---|
| Output tax | VAT you charged on your supplies for the period |
| Input tax | VAT you paid on qualifying business purchases |
| Adjustments | Corrections, bad debt relief, change in use |
| Net | The difference. Payable to SARS, or refundable to you |
The arithmetic is simple. What makes returns go wrong is the record behind them: input tax claimed against invoices that are not valid tax invoices, and output tax on documents that were never properly issued.
When it is due
Your tax period is assigned when you register. Most smaller vendors fall on a two-month cycle, with larger vendors on monthly, and specific categories on other cycles.
For eFiling, the return and the payment are generally due by the last business day of the month following the end of the tax period. Confirm your own period and due date on eFiling rather than assuming, because categories differ and the deadline shifts for manual submissions.
Filing on time even when you owe nothing
A nil return still has to be submitted. A vendor who trades quietly for a period and files nothing has a non-submission, not a nil return, and the two are treated differently.
Late submission and late payment are separate matters, and both carry consequences. The practical point is that filing on time costs nothing even in a period where the number is zero.
Before you file
- Confirm every invoice for the period has been issued and captured
- Check that supplier invoices you are claiming against are valid tax invoices
- Reconcile to the bank, not to memory
- Check credit notes have been applied
- Keep the supporting documents. SARS can ask
Common questions
Can I file a VAT201 myself?
Yes, through eFiling. Many small vendors do. Where the position is complex, a practitioner is worth the fee.
What if I make a mistake?
Corrections are possible, and the route depends on the error and how long ago it was. Get advice before adjusting a submitted return.
Do I still file if I had no sales?
Yes. A nil return is still a return.
Every document carries the VAT breakdown you will need at return time.
Create a VAT-ready invoice- SARS, Value-Added Tax
- Value-Added Tax Act 89 of 1991
Disclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.
