SARS eFiling: Complete Beginner's Guide for Small Business Owners

SARS eFiling is the South African Revenue Service's online platform for submitting tax returns, managing your tax profile, and communicating with SARS. Every business owner in South Africa needs to use eFiling at some point. This guide walks you through everything from registration to submitting your first return.

What Is SARS eFiling?

SARS eFiling is a free online portal that allows individuals, businesses, and tax practitioners to manage their tax affairs electronically. It eliminates the need to visit a SARS branch for most routine tax matters.

With eFiling you can:

• Submit income tax returns (ITR12 for individuals, ITR14 for companies)
• File and pay VAT returns (VAT201)
• Manage PAYE submissions (EMP201 and EMP501)
• Submit provisional tax returns (IRP6)
• Apply for tax clearance certificates
• View your tax compliance status (MCP)
• Update personal and business details
• Correspond with SARS electronically

Step 1: Register for SARS eFiling

If you have never used eFiling before, follow these steps:

For Individuals

• Go to www.sarsefiling.co.za
• Click "Register" and enter your South African ID number
• Complete your personal details (name, surname, contact information)
• Create a username and password
• SARS will send an activation code via SMS or post
• Enter the activation code to complete registration

For Businesses

• Register as an individual first (if not already registered)
• Log in and update your profile from "Individual" to "Organisation"
• Complete form RAV01 (Registration, Amendments, and Verification)
• Provide your company registration number and business details
• Wait for SARS to approve the organisation profile (1-5 business days)

Step 2: Navigating the eFiling Dashboard

Once logged in, you will see your dashboard with the following key sections:

• Returns — Submit and view tax returns for all tax types
• My Compliance Profile (MCP) — View your tax compliance status
• Notices — View correspondence from SARS
• Tax Types — Access specific tax types (Income Tax, VAT, PAYE, etc.)
• Payments — Make payments and view payment history

Step 3: Submitting Your Tax Return

Individual Tax Return (ITR12)

• During filing season (July to November), the ITR12 return appears on your dashboard
• Click "File Now" next to the return
• SARS auto-populates income data from employers, banks, and medical schemes
• Review and amend the pre-populated information
• Add business income, rental income, and deductions if applicable
• Submit the return and view your assessment immediately

Company Tax Return (ITR14)

• Due within 12 months of your company's financial year-end
• Requires financial statements prepared in accordance with IFRS or SA GAAP
• Include income, expenses, assets, liabilities, and tax calculations
• Small business corporations can claim reduced tax rates
• Submit supporting documents if required

VAT Return (VAT201)

• Select "VAT" from the tax types menu
• Click "File Return" for the relevant period
• Enter total sales (output tax) and purchases (input tax)
• The system calculates the net amount payable or refundable
• Submit and pay (or receive a refund) by the deadline

Step 4: Making Payments

To pay tax due on eFiling:

• Go to the "Payments" section on your dashboard
• Select the tax type you are paying
• Enter the amount and payment date
• Choose your payment method (EFT or direct deposit)
• Use the generated payment reference number for the transaction

Alternatively, you can pay via direct deposit into SARS's bank account at Standard Bank or Absa using the correct payment reference number. Never use a different reference — the system links payments to your profile using this number.

Step 5: Checking Your Compliance Status

Your My Compliance Profile (MCP) on eFiling shows whether you are tax compliant. This is important because:

• Government and municipal tenders require a valid tax clearance certificate
• Some private sector contracts require proof of tax compliance
• B-BBEE verification requires tax compliance status
• You can download your tax clearance certificate directly from eFiling

Common eFiling Issues and How to Solve Them

• Forgotten password: Use the "Forgot Password" link. Your activation code or security questions will be needed.
• Profile locked: After multiple failed login attempts, your profile is locked for 30 minutes. Wait or contact the SARS contact centre.
• Activation code not received: Check your SMS inbox. If not received, request a new code via the eFiling website or call the SARS Contact Centre on 0800 00 7277.
• Return not appearing: Ensure your profile is set to "Organisation" for business returns. If it still does not appear, contact SARS.
• Payment not reflecting: Payments can take 3-5 business days to reflect. Use the correct payment reference number and keep proof of payment.

SARS eFiling Tips for Small Business Owners

• Check your MCP regularly — do not wait until you need a tax clearance certificate.
• Set calendar reminders for all tax deadlines (provisional tax, VAT, annual returns).
• Keep digital copies of all supporting documents (invoices, receipts, bank statements).
• Use the SARS MobiApp for quick status checks on your phone.
• Consider appointing a registered tax practitioner if your tax affairs are complex.
• Respond to SARS queries promptly — delayed responses can trigger audits or assessments.