How to Submit a VAT Return (VAT201) on SARS eFiling

Once you are registered for VAT in South Africa, you must submit a VAT201 return every month or every two months, depending on your registration. This guide walks through the entire process, from logging into eFiling to submitting and paying.

What Is a VAT201 Return?

The VAT201 is the official SARS form used to declare your VAT activity for a specific tax period. It captures your total sales (output tax), purchases (input tax), adjustments, and calculates the net amount payable to or refundable by SARS.

Before You Start

Ensure you have the following information ready:

• Total sales for the period (broken down by standard-rated and zero-rated)
• Total purchases and expenses with VAT (input tax)
• Import documents (if you imported goods)
• Credit and debit notes issued or received
• Adjustments from previous periods (if any)

Step-by-Step: Submitting Your VAT201

Step 1: Log In to SARS eFiling

Go to www.sarsefiling.co.za and log in with your credentials. If you have not registered for eFiling yet, see our beginner's guide.

Step 2: Navigate to the VAT Section

From your dashboard, select "VAT" from the tax types menu. You will see a list of outstanding returns for each period. Click "File Return" next to the relevant period.

Step 3: Enter Output Tax (Section A)

Output tax is the VAT you charged your customers. On the VAT201, you will complete:

• Field 1: Value of standard-rated supplies (the total selling price excluding VAT)
• Field 2: VAT on standard-rated supplies (15% of field 1)
• Field 3: Value of zero-rated supplies (e.g. exports)
• Field 4: VAT on zero-rated supplies (always R0)
• Field 8: Value of deemed supplies (e.g. goods taken for personal use)

Step 4: Enter Input Tax (Section B)

Input tax is the VAT you paid on business purchases. Complete:

• Field 14: Total value of purchases and expenses (excluding VAT)
• Field 15: VAT on purchases and expenses (input tax you are claiming)
• Field 16: Capital goods purchased (assets like equipment, vehicles)
• Field 17: VAT on capital goods

You can only claim input tax if you have a valid tax invoice from the supplier. The invoice must show the supplier's VAT registration number, your name/address, and the VAT amount separately.

Step 5: Make Adjustments (Section C)

Use this section for adjustments such as:

• Bad debt relief (VAT previously paid on invoices you cannot collect)
• Credit notes issued or received during the period
• VAT on imported services
• Corrections from previous periods
• Apportionment adjustments (if you make both taxable and exempt supplies)

Step 6: Review the Calculated Amount

SARS automatically calculates the net amount:

If the result is positive, you must pay that amount to SARS. If negative, SARS will refund you, subject to verification.

Step 7: Submit and Pay

Review all fields carefully. Once submitted, you cannot edit the return — corrections require a manual process with SARS. After submission:

• If you owe VAT, pay via EFT using the payment reference number on the return
• If SARS owes you, the refund is processed after verification (allow 2-4 weeks)
• Download and save the acknowledgement receipt for your records

VAT Return Deadlines

Common VAT Return Fields Explained

VAT Refunds: What to Expect

If your input tax exceeds output tax (e.g. during periods of high capital expenditure), SARS will refund the difference. However:

• First-time refund returns are flagged for verification — allow 21+ business days
• SARS may request supporting documents (invoices, bank statements)
• Consistent refund patterns may trigger a VAT audit
• Refunds are paid into the business bank account on record with SARS

VAT Return Mistakes and How to Avoid Them

• Claiming input tax without a valid tax invoice — SARS requires a compliant tax invoice. A till slip is not sufficient for claims above R5,000.
• Incorrect VAT treatment of mixed supplies — If you supply both taxable and exempt goods, you must apportion your input tax. Calculate the ratio of taxable to total supplies.
• Missing the deadline — Set up recurring calendar reminders aligned with your VAT period.
• Not reconciling VAT returns with your accounting system — Your VAT return figures should match your accounting records. Discrepancies trigger SARS queries.
• Forgetting to account for exchange rate differences — If you import or export, use the SARS published exchange rate for the date of the invoice.