Starting to Sell from Home in South Africa: Registration, Tax and the Rules

Do you need to register a company? When do you register for VAT? What must your shop show by law? The plain-language answers for 2026, with the new R2.3 million thresholds.

You've got a product, a few people who want it and a kitchen table. Before you worry about logos, here's what South African law actually asks of a small online seller in 2026, in plain words.

This is general information, not tax or legal advice. When money gets serious, talk to an accountant.

Do you need to register a company?

No, not to start. You can trade as a sole proprietor under your own name, with no CIPC registration. Your business income is simply part of your personal income for tax.

Registering a private company (Pty Ltd) with CIPC makes sense when:

you want to keep business debts separate from your personal ones,
you're taking on a partner or investor,
or a supplier, bank or payment provider asks for company documents.

You can register a company online through CIPC's BizPortal. Check the current fees there.

Tax: what applies to you

Income tax

Profit from your business is taxable. As a sole proprietor, you declare it on your normal income tax return. Keep every receipt for stock, packaging, delivery and fees, because you only pay tax on profit.

Turnover tax, a simpler option

If your business turnover is R2.3 million a year or less, you may qualify for turnover tax. It replaces income tax, VAT and some other taxes with one simple tax on turnover, and the first R600,000 is taxed at 0%. Some businesses, like regulated professions, are excluded. You have to apply for it; it isn't automatic.

These thresholds went up on 1 April 2026. Lots of guides online still show the old R1 million figure.

VAT

You must register for VAT once your taxable sales go over R2.3 million in any 12 months (up from R1 million before April 2026). You may register voluntarily from R120,000.

Below the threshold, most small sellers don't register: your prices stay 15% lower than a VAT-registered competitor's, or your margin stays higher. Once you are registered, the prices you show must include VAT. See How to price your products in rand.

What your online shop must show

The Electronic Communications and Transactions Act (section 43) lists what an online seller has to show. In short:

your name or business name, and whether it's registered,
a physical address and contact details,
a description of what you sell,
the full price, including delivery and any taxes,
how people can pay,
your returns and refund policy,
how you keep payments and personal information secure,
how people can complain.

Customers who buy online also usually get seven days to cancel after receiving their goods (section 44). There are exceptions, such as made-to-order or personalised goods and perishables.

ShopEazy creates terms, privacy, refund and delivery policy pages for your shop when you sign up, filled in with your details. Read them and adjust them to fit what you sell.

Personal information

Collecting names, phone numbers and addresses means the Protection of Personal Information Act (POPIA) applies. Only collect what you need, keep it safe, and don't add people to your marketing list unless they said yes.

A simple starting checklist

Open a separate bank account for the business, even as a sole proprietor.
Keep every receipt from day one.
Set up your shop with your real contact details and policies.
Price properly, including fees and delivery.
Diarise a check of your turnover every few months against the R2.3 million thresholds.

Ready? Set up your store. Seven days of Growth are free, no card needed.