XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Bookkeeping
Overview
The “VAT Registration Required” XBert monitors your business’s revenue levels to determine if you are required to register for VAT under South African Revenue Service (SARS) rules. If your business is not yet registered and your taxable turnover has met or is approaching the threshold, this alert will notify you.
What it does
This XBert analyses your revenue data during synchronisation and checks if the total taxable turnover for the past 12 months meets or exceeds the mandatory VAT registration threshold of R1,000,000. If so, and your business is not currently registered for VAT, an alert is raised so you can take action promptly.
How it works
This XBert:
Checks your total taxable revenue from the past 12 months
Identifies whether this amount meets or is likely to meet the VAT registration threshold of R1,000,000
Confirms your VAT registration status with SARS
If you're not yet registered but exceed the threshold, an alert is triggered to ensure timely compliance
The alert also provides guidance for voluntary registration if your taxable supplies have exceeded R50,000 in the past 12 months, even if the R1 million threshold hasn't yet been reached.
Example / Use Case
Barry is a sole trader who sells specialised car parts. At the end of May, his gross income for the month is R2,560. When added to his income from the previous 11 months, his total turnover is R31,170—still under the R1 million threshold. Although Barry doesn’t yet need to register, he continues to monitor his turnover each month.
If Barry exceeds the threshold, he’ll be required to register for VAT and submit his application within 21 days from the date he crosses it.
Accounting software
Currently applicable to South African tenants across supported accounting software platforms.
Which countries it supports
South Africa only
Processes
This XBert is part of the Compliance process within Bookkeeping.
If your business has exceeded or is about to exceed the VAT registration threshold:
Select RESOLVE NOW to visit the SARS website and begin your VAT registration
File the XBert if it is not relevant or has already been addressed
Consult with your tax advisor or accountant to ensure correct procedures are followed
Failing to register for VAT when required may result in penalties, interest charges, and being liable for VAT on past sales, even if you did not charge VAT at the time. Stay compliant and avoid unnecessary costs by tracking your revenue and acting quickly when needed.