Legal requirements for an online store in South Africa
Selling online in South Africa brings in the Electronic Communications and Transactions Act (ECTA) on top of the usual business rules, and VAT once sales pass a set amount. This guide lists what the Act asks of the shop itself, using its own wording.
What the shop must show (ECTA section 43)
Section 43(1) lists the information a supplier selling by electronic transaction must make available on the website where the goods or services are offered. Grouped:
Who you are
Full name and legal status, physical address and telephone number, website and e-mail address, and the physical address for legal service of documents. Companies add registration number, office bearers and place of registration.
What you sell
A sufficient description of the main characteristics, so the customer can make an informed decision.
The full price
Including transport costs, taxes and any other fees or costs.
Payment and delivery
The manner of payment, and the time within which goods will be dispatched or delivered, or services rendered.
Your policies
Terms of agreement and guarantees, the return, exchange and refund policy, and the security procedures and privacy policy for payment and personal information.
How checkout has to work
ECTA also sets rules for the order process and payment.
Review the whole transaction
Section 43(2): before the order is finally placed, the customer must be able to review the entire transaction.
Correct mistakes
The customer must be able to correct any mistakes in the order.
Withdraw before ordering
The customer must be able to withdraw from the transaction before finally placing the order.
Use a secure payment system
Section 43(5): the payment system must be sufficiently secure with reference to accepted technological standards.
The time limits customers have
Four periods in ECTA that every online seller should know.
Section 44(1)(a): the customer may cancel without reason or penalty within seven days after receiving the goods.
Section 44(1)(b): within seven days after the agreement is concluded.
Section 44(3): a full refund must be made within 30 days of the date of cancellation.
Section 43(3): the customer may cancel within 14 days of receiving the goods or services.
When you have to register for VAT
SARS sets the thresholds. Check its own page rather than older articles, which often quote an outdated figure.
Compulsory registration
SARS says registration is compulsory when taxable supplies in any consecutive 12-month period exceeded, or are likely to exceed, R2.3 million, or will exceed it under a written contract.
Deadline to apply
An application for compulsory VAT registration must be made within 21 business days from the date the R2.3 million is or will be exceeded.
Voluntary registration
A business below R2.3 million may choose to register voluntarily if its taxable supplies exceeded R120,000 in the past 12 months, under certain circumstances that SARS sets out.
Cooling-off versus cancellation for missing information
Two different rights in ECTA that are often confused.
Section 44: cooling-off
- Applies to the transaction, whatever the shop displays
- Cancel without reason and without penalty
- 7 days after receiving goods, or after concluding a services agreement
- The only charge allowed is the direct cost of returning the goods
- Full refund within 30 days of cancellation
Section 43(3): missing information
- Applies when the shop does not comply with section 43(1) or (2)
- For example, no full price or no refund policy shown
- 14 days after receiving the goods or services
- Customer returns the goods or stops using the services
- Refund of all payments minus the direct cost of returning the goods
We build online shops with these pages and checkout steps in place: see e-commerce development, or e-commerce websites in East London.
Questions people ask
Do I need to register a company to sell online?
No law quoted here requires a company to sell online. ECTA section 43 applies to any supplier, and asks for its full name and legal status; a company must also show its registration number, office bearers and place of registration.
What is the cooling-off period for online purchases in South Africa?
ECTA section 44 gives customers seven days to cancel without reason or penalty: seven days after receiving goods, or seven days after concluding an agreement for services. The refund is due within 30 days.
At what turnover must I register for VAT?
SARS says registration is compulsory once taxable supplies exceed, or are likely to exceed, R2.3 million in any consecutive 12-month period. Voluntary registration is possible from R120,000 in the past 12 months under certain circumstances.
Does my online store need a privacy policy?
Yes. ECTA section 43(1)(p) requires the security procedures and privacy policy in respect of payment, payment information and personal information, and POPIA section 18 requires a notice whenever you collect personal information.
Sources
Every statement above comes from these pages, read on 15 November 2026. This guide explains the rules in plain language; it is not legal or tax advice for your particular business.
- ECTASection 43: information to be provided
- ECTASection 44: cooling-off period
- SARSRegister for VAT: compulsory and voluntary thresholds
- POPIASection 18: notification to data subject
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