Getting a Tax ID number is free and uncomplicated. & There are benefits to obtaining one.
Obtaining a Tax Number
To receive your 10-digit tax number you must register as a tax payer*. This must be done in-person by visiting your nearest SARS office branch.
For a successful application you will need to provide the following:
• A valid identification document such as RSA ID book or smart ID card, passport, temporary ID document, driving license, or asylum seekers certificate.
• Copies of the identifying document that you present
• Proof of Residence that shows your name and the physical address on an official letterhead. (Examples include an electricity, utilities or phone bill, retail accounts, educational enrollment information, insurance documents, court orders including traffic fines, lease agreements, and others.)
• Banking Details less than 30 days old that clearly include your name, account number, account type, bank branch, date of opening. (This information can be on original bank statements or bank letters.)
*Tax obligation is based on income, residence and more. Receiving your tax ID number alone does not make you required to file tax.
There is no waiting-time incurred provided you bring the required documents. A SARS representative should be able to help you by providing you with your Tax ID number immediately.
Use your tax ID number to register online for SARS eFiling. This does not cost any money and allows for you to complete your taxes easily over the Internet.
Not sure if you’ve registered or unsure of your Number?
Call SARS 0800 00 7277 to confirm. Be prepared with your ID Number ready at hand.
Seven Benefits of having a Tax Number
1. Be Legally Sound & Legitimate. South African law requires any person liable to pay tax to register themselves.
2. Be prepared for VAT. Even if your new business is not yet earning enough – it is still good to be ready for when you are. Tax registration is required for VAT registration
3. Consumer Confidence. Having a registered tax number builds trust, allowing customers and vendors to view your business as a legitimate entity. Similarly, Employers will require your tax ID number such that you may be issued with IRP5’s.
4. Receive your rightful Tax Refunds. Overpayment and refunds are returned via the SARS eFiling platform which requires a tax registration number.
5. Trade shares. Creating a stock portfolio and trading on SATRIX requires tax registration.
6. Make the most of banking opportunities. Certain banks require tax registration numbers before one becomes eligible for certain services.
7. Ready to do Business. Registering allows you peace of mind because you know there will be no nasty legal surprises in the future. A tax number is legally required if you want to:
• Buy a house
• Compete for Tenders and Contracts
• Become a company Director (or CC member)
• Operate a business in your name
Prestigio knows that being an Entrepreneur means covering many bases. That is why we aim to provide concise guides and inspiration to help you unleash your potential.
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