How to invoice when you're not registered for VAT (South Africa)

Most South African small businesses aren't registered for VAT, and since 1 April 2026 even more of them don't have to be: the registration threshold jumped from R1 million to R2.3 million. You still send invoices; you just leave VAT out. What catches people out is the title on the invoice, a stray VAT line, and the time limit once they cross the threshold.

This guide explains what a plain invoice needs when you're not registered, how the new thresholds work, and what changes when you register or deregister. The free invoice generator starts South African invoices as "Not registered for VAT" and leaves VAT off everywhere.

What to put on your invoice

The tax invoice rules in section 20 of the VAT Act are for registered vendors. If you're not registered, your invoice simply needs to be clear about who's billing whom, for what, and how to pay:

A business that isn't registered must not charge VAT, show a VAT number or call its document a tax invoice. Your clients can't claim VAT back on your invoice, so it shouldn't look like a tax invoice.

If you trade as a company or close corporation, the Companies Act still applies: show your full company name and registration number. See company details on invoices. A sole proprietor with a trading name can show both, such as "Thandi Mokoena t/a Mokoena Design".

Say why there's no VAT

You don't have to explain the missing VAT, but a short line saves questions from clients who expect it. A common, clear wording is:

Not registered for VAT.

It isn't prescribed, so you can put it in the invoice notes in Invoice Native, or leave it out.

An example invoice

A Durban photographer who isn't registered for VAT bills a client:

Under the total, add how to pay. For an EFT, give the account holder, bank, account number, branch code and account type (cheque or current, savings, or transmission), and ask the client to use the invoice number as the reference. You can also add a PayShap ShapID, usually your cellphone number, for instant payments. Invoice Native prints both, with a reminder that your banking details will never change by email.

The VAT registration threshold

You must register for VAT when your taxable supplies exceed R2.3 million in any 12-month period, from 1 April 2026. Before that date the threshold was R1 million, where it had been since 2009.

SARS's VAT page states the new figure as in effect, and SARS administers registrations on it. When SARS published its Budget 2026 FAQs, it noted that the amendments "have not yet been promulgated", with the change deemed to apply from 1 April 2026. Check SARS's VAT page for the latest position.

Once you're liable, you must apply to register within 21 business days. A big contract can push your 12-month total over the line in one go, so keep an eye on it as you grow.

Voluntary registration

You can register voluntarily once your taxable supplies pass R120,000 in a 12-month period. That minimum also rose on 1 April 2026; it was R50,000. A business that makes only exempt supplies, such as residential rent, can't register.

Once you're registered, you:

• charge 15% VAT on your standard-rated supplies;
• issue tax invoices with your VAT number;
• can claim back the VAT you pay on business costs as input tax;
• submit VAT201 returns, usually every two months.

Some businesses register because their clients are VAT vendors who can claim the VAT back. Others stay unregistered because their clients are consumers. It depends on your situation, so talk to a registered tax practitioner before you decide. When you register, switch Invoice Native to "Registered for VAT"; see what a tax invoice must show.

Already registered and under R2.3 million?

The higher threshold doesn't cancel anyone's registration on its own. Deregistration isn't automatic:

• if your taxable supplies are under R120,000, SARS will notify you that it intends to cancel your registration, and you may object;
• if they're between R120,000 and R2.3 million, you may apply to deregister.

Deregistering can trigger VAT on the business assets you keep, which SARS allows you to pay in six monthly instalments. Until your registration is cancelled, keep issuing tax invoices and charging VAT. Afterwards, switch to "Not registered for VAT"; invoices you already issued stay tax invoices.

Checklist

• ✅ Title "Invoice", never "Tax Invoice"
• ✅ Your name, any trading name, and your company details if you're a company
• ✅ A unique number, the date, your client's details, descriptions and amounts
• ✅ No VAT line, rate, total or number anywhere
• ✅ "Not registered for VAT." in the notes (optional, but clear)
• ✅ An eye on your turnover against R2.3 million, and 21 business days to register

Rules can change, so check SARS's guidance or ask a registered tax practitioner about your situation. Keep your records for 5 years.