Tax periods for VAT vendors

The following five categories of tax periods are available:

Category A

Two-monthly tax period

• Under this category, a vendor is required to submit one return for every 2 calendar months, ending on the last day of January, March, May, July, September and November.
• The Commissioner will determine whether a vendor falls within this category.

Category B

Two-monthly tax period

• Under this category, a vendor is required to submit one return for every 2 calendar months, ending on the last day of February, April, June, August, October and December.
• The Commissioner will determine whether a vendor falls within this category.

Category C

Monthly tax period

• Under this category, a vendor is required to submit 1 return for every calendar month.
• A vendor will fall within this category if:

• the total value of taxable supplies made by the vendor has exceeded or is likely to exceed R30 million in any consecutive period of 12 months,

• •  the vendor has applied in writing to be placed in this category, or
  • the Commissioner determined that the vendor falls within this category due to the vendor repeatedly failing to perform any obligations as required by the VAT Act.

Category D

Six-monthly tax period

• Under this category, a vendor submits one return for every 6 calendar months, ending on the last day of February and August (or any other month where written application is made to the Commissioner and approved)
• This category applies mainly to a vendor who
  • carries on farming activities, where the total value of taxable supplies is less than R1.5 million for a period of 12 months,
  • is a micro business that is registered in terms of the Sixth Schedule to the Income Tax Act.

Category E

Annual tax period

• Under this category, a vendor is required to submit 1 return for every 12 months, ending on the last day of the vendor’s year of assessment (or any other month where written application is made to the Commissioner and approved)
• This category applies to a vendor:
  • that is a company or a trust fund
  • that carries on activities of letting of fixed property or renting of movable goods or the administration or management of companies which are connected persons to the vendor
  • for additional qualifying criteria, refer to Chapter 3 of the VAT 404 Guide for Vendors.

May a vendor request to change its allocated tax period category?

Yes, if all the qualifying requirements are met.

For the qualifying criteria, refer to Chapter 3 the VAT404 Guide for Vendors.

Process to request for a tax period category change

Submit a written request via the SARS Online Query System or make a virtual appointment via the SARS eBooking system.