If your business is registered for VAT, the VAT201 is the return you submit to SARS to declare the VAT you charged and the VAT you paid. It sounds intimidating, but the idea is simple: you're the middleman collecting VAT for SARS, and the VAT201 is where you settle up.
Who must register for VAT?
VAT registration is compulsory once your taxable turnover passes R1 million in any 12-month period. You can register voluntarily once you've made R50,000. Once registered, you charge 15% VAT on your sales and file VAT201s — usually every two months.
Output VAT vs input VAT
The whole return comes down to two numbers:
- Output VAT — the 15% VAT you charged your customers on your sales.
- Input VAT — the VAT you were charged by your suppliers on business purchases.
You pay SARS the difference:
- If output VAT is more than input VAT, you pay the difference.
- If input VAT is more than output VAT (common when you've bought stock or equipment), SARS refunds you.
A quick example
Say in a two-month period you:
- Sold R230,000 including VAT → output VAT = R30,000
- Bought R115,000 of stock and expenses including VAT → input VAT = R15,000
Your VAT201 shows R30,000 − R15,000 = R15,000 payable to SARS.
Zero-rated and exempt supplies
Not everything is taxed at 15%. Zero-rated items (like brown bread, maize meal, and exports) are taxed at 0% — you still claim input VAT on related costs. Exempt supplies (like residential rent and certain financial services) carry no VAT and no input claim. Getting this split right matters, because it changes what you declare.
When is it due?
VAT201s are generally due by the 25th of the month after the tax period (or the last business day if you file and pay electronically). Late submission or payment triggers penalties and interest — so the calendar matters.
Make it automatic
Working out output VAT, input VAT, and the split between standard, zero-rated and exempt sales by hand is where mistakes creep in. 360books tracks the VAT on every invoice and bill, keeps your standard, zero-rated and exempt supplies separate, and builds your VAT201 for you — so filing is a review, not a reconstruction.
Want to check a single VAT amount quickly? Use our free VAT Calculator.