Records a turnover tax business must keep
The records SARS expects from a South African micro business on turnover tax: amounts received, dividends, larger assets and liabilities, kept five years.
By Achekam · · 5 min read · For Running a business businesses in South Africa
Part of turnover tax's appeal is that it asks for less paperwork. A micro business is taxed on what comes in, not on profit, so its expenses do not enter the tax calculation at all. Some owners take that to mean the shoebox of receipts can go.
It cannot, quite. SARS still sets out records a turnover tax business must keep, and they are specific. The list is shorter than for an ordinary business, but each item on it is there because SARS may need it to check your returns. This article explains what SARS asks for, the standard the records must meet, how long to keep them, and how a business can keep them in order without extra effort.
Why the list is shorter
SARS says turnover tax replaces income tax, VAT, provisional tax, capital gains tax and dividends tax for micro businesses with qualifying annual turnover of R2.3 million or less, although a registered micro business may elect to remain in the VAT system.
That explains the shape of the record-keeping rules. The tax is worked out on turnover, so the core record is what the business received. Because the other taxes are replaced, many of the records they would need fall away. A business that stays in VAT, though, still needs its VAT records as well, which is a separate obligation. Who qualifies and what the regime costs are covered in turnover tax for micro businesses from April 2026.
What SARS asks a micro business to keep
SARS says a micro business on turnover tax must keep records of:
- all amounts received, because those make up the turnover the tax is worked out on;
- dividends declared, where the business is a company or co-operative that declares them;
- a list of each asset costing more than R10 000 at year end;
- a list of each liability exceeding R10 000 at year end.
The first item is broad on purpose. "All amounts received" covers cash at the counter, card and EFT receipts, money collected on the business's behalf and anything else that came in. A record that only covers invoiced sales will miss cash sales, and they count too.
The two lists are a year-end snapshot. On the last day of the year, write down every asset that cost more than R10 000 and every liability over R10 000. For assets, that means equipment, vehicles, furniture and similar items. For liabilities, think of loans, overdrafts, vehicle finance and large unpaid supplier accounts.
Original form, in order, for five years
The standard the records must meet is set out on SARS's record-keeping page. SARS says records must be kept in their original form, in an orderly fashion, in a safe place and open for inspection, and may be kept electronically as prescribed by the Commissioner.
Each phrase is a test you can apply:
| SARS's requirement | What it means in practice |
|---|---|
| Original form | Keep the slip, the bank statement, the invoice, not a retyped summary of it |
| Orderly | Someone else could find a given month's records without your help |
| Safe place | Protected from loss, damage and casual access |
| Open for inspection | Available when SARS asks |
| Electronically, as prescribed | Electronic records are allowed, within the rules the Commissioner sets |
As for how long: SARS says a person who has submitted a return must keep records for five years from the date the return was submitted. The clock runs from submission, not from the end of the year the records relate to, so a late return keeps its records alive for longer.
SARS's record-keeping page sets out the general rules on what to keep, in what form and for how long, and is the place to confirm them. The general rules for keeping tax and company records are in how long to keep tax and company records.
The fixed-asset register as your asset list
The year-end list of assets over R10 000 is easiest to produce if you never have to start it from scratch.
In Achekam, a fixed-asset register lets a business add assets at cost, depreciate them monthly by straight line or reducing balance with a journal each month, and dispose of them with the profit or loss posted. Because each asset is entered at cost, the register already holds the figure SARS's test turns on. At year end, go through it for assets that cost more than R10 000 and you have your list.
Two limits to know. Tax wear-and-tear is not worked out by the register, though for a turnover tax business that matters less than for an ordinary one. And the fixed-asset register is not included in Business Essentials, so check that your workspace has it before relying on it.
Bank imports and Document Centre for the rest
Amounts received. Most of a micro business's receipts pass through its bank account. In Achekam, a business imports bank statements as PDF, CSV, Excel, OFX, QIF, MT940 or CAMT.053, and each import is checked so that the opening balance plus movements equals the closing balance. That check shows each statement was read in full, and when each statement opens where the last one closed, nothing is missing between them. Where a workspace has an AI model configured, it can read scanned or unrecognised PDF statements, and every amount it reads must appear on the page. Cash takings that never reach the bank need their own record, such as a daily cash-up sheet.
The originals. Document Centre is a folder-based store where a business uploads files or whole folders, previews, downloads, renames, moves, tags, archives and searches them, and a new version keeps the earlier ones. A folder per year, with subfolders for bank statements, sales records, asset invoices and loan agreements, goes a long way towards "orderly". Uploads go in batches of up to 25 files, at 100 MB per file by default.
A year-end routine
On the last day of the year, export the asset list from the register, write the list of liabilities over R10 000, record any dividends declared, and make sure every month's bank statement is imported and balanced. File the lot in that year's folder. Then note the date you submit the return, because the five years start from there.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
