VAT number vs income tax reference number in South Africa

Two 10-digit numbers from SARS

SARS gives a business several reference numbers. The two that get confused most often are the VAT registration number and the income tax reference number, because both are 10 digits long and both appear on SARS correspondence.

They do different jobs. The income tax reference number identifies a taxpayer for income tax. The VAT registration number shows that the business is registered as a VAT vendor, and it is the number that belongs on a tax invoice and that you look up to confirm VAT registration.

How to tell them apart

• A VAT registration number starts with 4, for example 4123456789.
• An income tax reference number does not start with 4.
• A number with fewer or more than 10 digits is neither: it has been mistyped or cut short.
• A company registration number from CIPC, such as 2015/123456/07, is a different thing altogether. It is not issued by SARS and does not show VAT registration.

Where you will see each number

• VAT number: on the supplier's tax invoices, credit notes and debit notes, and on its notice of VAT registration.
• Income tax number: on tax returns, tax compliance status documents and some supplier onboarding forms that ask for a "tax number".
• Both: on some letterheads and in supplier master data, which is where the two most often swap places.

Why the mix-up causes problems

A typical route is a supplier form with a single field labelled "tax number". The supplier fills in its income tax reference, and the accounts team captures it as the VAT number. Because it has the right length, it passes a visual check, and it can sit in the vendor master for years.

The cost shows up later: input tax claims backed by a number that does not prove VAT registration, and a supplier that may not be registered for VAT at all. Only a lookup against the SARS VAT vendor search reveals the problem, because the number looks plausible on paper.

Fixing it in your supplier records

• Label the onboarding field "VAT registration number (10 digits, starts with 4)" and keep any income tax number in a separate field.
• Reject entries that do not start with 4 when they are captured, so the mistake never reaches the vendor master.
• Run the whole supplier list through the bulk SARS VAT vendor search to find the numbers that do not check out.
• For each one, ask the supplier for its notice of VAT registration, or confirm in writing that it is not a VAT vendor.

Finding the wrong numbers in a vendor list you already have

Start with the cheap filter. Export the VAT number field from your accounting system and sort it: anything blank, anything that is not 10 digits, and anything that does not start with 4 is not a VAT number and needs a conversation with the supplier.

Then check the rest. A number can pass the format filter and still be wrong, because the supplier has deregistered or two digits were swapped when it was captured. Running the remaining numbers through the bulk SARS VAT vendor search shows which ones SARS actually finds, and gives you an exportable record of the clean-up.

Frequently asked questions

Does every business have a VAT number?

No. Only businesses registered for VAT have a VAT number. Most taxpayers have an income tax reference number, but that says nothing about VAT registration.

Can I use an income tax number to check VAT registration?

No. The SARS VAT vendor search looks up VAT registration numbers. An income tax reference number will not be found there, even for a business that is registered for VAT.

Is a CIPC company registration number the same as a VAT number?

No. The CIPC number identifies the company in the companies register. VAT registration is separate and is shown by the VAT number SARS issues.

Where do I find my own company's VAT number?

On the notice of VAT registration SARS sent when the business registered, and on your SARS eFiling profile. It is the 10-digit number starting with 4 that should appear on every tax invoice you issue.