Which VAT tax period applies to my business, and can I request a change?

Direct answer

SARS allocates each VAT vendor to a tax-period category. Categories A and B are generally two-monthly. Category C is monthly in specified cases, including where taxable supplies exceeded or are likely to exceed R30 million in a consecutive 12-month period. The farming route to Category D is six-monthly for a sole agricultural, pastoral, or farming enterprise where taxable supplies are less than R1.5 million in a consecutive 12-month period; qualifying turnover-tax micro businesses are another Category D route. Category E is annual for narrowly defined qualifying companies or trusts.

You can ask SARS to change your allocated category only if you meet the relevant requirements. SARS says that the request must be made at a branch through eBooking. Continue following the period shown on your SARS registration and VAT201 records unless SARS approves a change.

What this means in practice

Your VAT category controls the period for which you calculate output tax, input tax, a VAT payment, or a VAT refund. It is not simply a preference for filing more or less often. The category is allocated by SARS and has conditions.

For many vendors, Category A or B means one return every two calendar months. Category A periods end in January, March, May, July, September, and November. Category B periods end in February, April, June, August, October, and December. SARS determines which of these two categories applies.

Category C requires a return for every calendar month. SARS identifies three routes into this category: taxable supplies exceeding or likely to exceed R30 million in any consecutive 12-month period; a written application by the vendor; or a SARS determination after repeated failures to meet VAT obligations.

Category D is six-monthly. The farming route is for a sole agricultural, pastoral, or farming enterprise with taxable supplies below R1.5 million in a consecutive 12-month period. A Sixth Schedule micro business is another Category D route. Category E is annual, but it is not an automatic option for every company or trust. SARS limits it to qualifying companies or trusts carrying on the stated property-letting, movable-goods rental, or connected-person management activities, together with further VAT 404 conditions.

Step-by-step

1. Check your SARS VAT registration notice and your most recent VAT201 returns. These show the category SARS has currently allocated.

1. Prepare a rolling 12-month taxable-supplies report. Use taxable supplies, not only cash received or accounting profit. If you have more than one division or activity, make sure your analysis reflects the business facts properly.

1. Compare your activity and turnover with the SARS category conditions. Consider whether Category C is compulsory, whether you are a sole agricultural, pastoral, or farming enterprise that meets the Category D consecutive-12-month test, whether another Category D or E condition applies, or whether you remain in the existing Category A or B.

1. If you believe another category is appropriate, gather the evidence supporting that view. This may include management accounts, VAT201 history, turnover-tax registration evidence, or documents describing qualifying property, rental, farming, or management activities.

1. Make an eBooking and submit the period-change request at a SARS branch. A request is not the same as approval. SARS must be satisfied that the qualifying requirements are met.

1. Keep filing and paying according to the allocated category until SARS confirms a change. Do not change your VAT filing pattern on your own because it appears more convenient for cash flow.

Documents and records to keep

• SARS VAT registration notice and recent VAT201 returns.
• A rolling 12-month taxable-supplies report and management accounts.
• Evidence that the business is a sole agricultural, pastoral, or farming enterprise and its consecutive-12-month taxable-supplies report, or turnover-tax registration evidence, where Category D is relied on.
• Evidence of qualifying property letting, movable-goods rental, or connected-person management activity, where Category E is relied on.
• Your written request, eBooking record, and SARS approval or refusal correspondence.

Important limits and exceptions

The R30 million Category C condition is based on taxable supplies in a consecutive 12-month period and includes a likely-to-exceed test. Do not replace that test with a simple annual budget or a calendar-year sales figure.

The R1.5 million Category D farming condition is limited to a sole agricultural, pastoral, or farming enterprise whose total taxable supplies are less than R1.5 million in a consecutive 12-month period. A business is not entitled to this Category D route merely because it is small or has some farming income. Similarly, a company or trust does not qualify for annual Category E treatment simply because it owns property. The detailed conditions in VAT 404 still apply.

This guide is about category allocation and changing category. It does not set out all VAT return and payment due-date rules. It also does not advise on VAT registration or deregistration, which are separate matters.

When to get tailored advice

Get advice if turnover is approaching the monthly threshold, if the business has multiple activities, if a group or connected-party arrangement is involved, or if you believe you meet a special Category D or E condition. Advice is also sensible where SARS has changed your category because of a compliance issue.

TaxProof can help prepare the turnover report, VAT201 history, and supporting activity records for a category-change request. SARS still determines the allocated category and whether a request qualifies.

Related TaxProof guides

• VAT registration and VAT201 compliance
• Related upcoming guide: debit and credit notes, PILOT-007
• Related upcoming guide: VAT refunds that are still pending, PILOT-009

Sources

• SARS tax periods for VAT vendors
• SARS VAT farming guidance
• SARS VAT 404 Guide for Vendors

Source-retrieval record: the official SARS tax-period page was retrieved on 2026-08-28 and displayed a last-updated date of 2025-01-31. The VAT 404 guide was also retrieved from its current official SARS URL on 2026-08-28. The unverified 21-day Category C notification instruction has been removed from this draft. Revalidate the category conditions and service channel immediately before publication.