Documents Needed to Sell Scrap

If you've ever arrived at a scrap yard only to be turned away over missing paperwork, you know exactly how frustrating that is. Selling scrap metal carries a real documentation requirement, and it's backed by national law.

We're not creating extra hurdles for their own sake. Under the Second-Hand Goods Act of 2009, registered dealers like us must keep verified records of every transaction, including seller identity and material sources, for a minimum of five years. That requirement flows directly to you as the seller.

This guide, part of our scrap metal blog, covers every document you'll need: your government-issued ID, proof of ownership, business registration, and banking details.

Get these ready before you come in, and you'll avoid delays, holdbacks, and rejected loads.

Quick Facts & Key Takeaways

• Business registration certificates and trade licences prove your legitimate operation and are essential for all commercial scrap sellers.
• Original invoices, receipts, contracts, and delivery notes establish a clear ownership trail and protect you during every transaction.
• VAT registration with SARS becomes compulsory once your taxable turnover exceeds the SARS registration threshold in any consecutive 12-month period, so track your figures if you sell at scale.
• Utility bills, vehicle de-registration documents, and waste disposal receipts verify your local connection and confirm your scrap came from legitimate sources.
• You must provide government-issued identification and proof of ownership documents before selling scrap materials to us at our yard.

Key Documents Required to Sell Scrap

Before we accept your load at our yard, you need to produce several key documents. These papers prove your identity, confirm you own the materials, and establish your legal right to sell them.

Under the Second-Hand Goods Act of 2009, dealers like us are legally required to maintain a detailed transaction register, including verified seller identities and material sources, for a minimum of five years. We are not inventing bureaucracy. We are complying with national law as part of our Second-Hand Goods Act compliance, and your paperwork is a direct part of that process.

The documents fall into three broad categories: identity, ownership, and business compliance. Knowing which papers belong in each group helps you prepare for a smooth, fast transaction at our yard.

What government-issued ID proof do I need to sell scrap?

Government-issued identification is the first thing we ask for. No transaction can go ahead without it.

Under the Second-Hand Goods Act, we can only accept these forms of government-issued ID:

• A green barcoded ID book
• A Smart ID card
• A valid passport (for foreign nationals)
• A valid driving licence card

Bring one of these to every transaction. An expired document or an unofficial copy will get your load rejected, which wastes your trip and delays your payment. This step protects both you and us from illegal dealings, and it links your identity to each transaction in our records.

Honest identification builds trust between scrap sellers and legitimate buyers.

Proof of ownership matters just as much as your personal identity. You must show documents that confirm you own the scrap you're bringing in. Vehicle registration papers or a vehicle title establish your right to sell a motor vehicle as scrap.

A notice of disposal form from the licensing department confirms you have de-registered the vehicle correctly. If your vehicle's licence disc renewal is still outstanding, resolve that beforehand, as it can complicate the de-registration process. Your business records can also show business ownership if you operate as a contractor or factory.

Whether we're collecting your car or you're selling directly at our yard, bring these documents alongside your government-issued ID. Arriving prepared keeps the process moving and avoids unnecessary delays.

How do I prove my business registration or trade licence?

If you sell scrap commercially, your business registration certificate and trade licence are non-negotiable. These two documents prove you run a legitimate business and that the relevant authorities have approved your scrap selling activities.

We require this proof before we collect materials from your site. Your registration certificate shows your business name, registration number, and official stamp. Your trade licence details the type of work you do and the areas where you operate.

Commercial sellers and the wider should carry all of the following to every transaction:

• Business registration certificate (with name, number, and official stamp)
• Trade licence showing your business type and operating area
• Tax clearance certificate confirming your SARS compliance status
• Company-stamped delivery notes for each load

Your local council issues trade licences after you submit your application. You register your business through the Companies and Intellectual Property Commission (CIPC). We expect sellers to produce both certificates without being asked.

Tax clearance certificates carry real weight. Under gazetted Department of Trade, Industry and Competition amendments, registration as a commercial scrap and waste metal seller is only granted to businesses that maintain a satisfactory Tax Compliance Status with SARS. Having your CIPC registration in order is a start. Your tax affairs must also be fully current before you can trade legally with a registered buyer like us.

Keep certified copies of all business documents readily available at all times. We may ask for photocopies for our own records. Contractors and small businesses benefit significantly from carrying full business registration and delivery notes to every transaction.

What documents show ownership or source of the scrap?

Proving ownership of your scrap materials protects you during the sale. We require solid documentation before we accept your load at our yard.

For personal sellers, these are the key documents to have ready:

• Original invoices from your purchase of scrap establish a clear ownership trail, showing when you acquired the items and from whom.
• Receipts from suppliers or previous owners confirm the source of your scrap. Keep these papers safe as proof of legitimate acquisition.
• Contracts between you and other parties document the formal transfer of scrap ownership and protect both seller and buyer in a transaction.
• Change of ownership paperwork applies when you inherit or receive scrap from another party, clarifying your legal right to sell the materials.
• Titleholder certificates prove ownership for vehicle scrap and metal components. Vehicle de-registration documents from NATIS (RC1) support this claim directly.

Businesses and contractors should also prepare the following:

• Delivery notes from waste disposal services show the origin of industrial scrap. Factories and contractors should collect these immediately after receipt.
• Utility bills serve as proof of residence and verify your local connection. We often request this from sellers.
• Waste disposal receipts from licensed operators confirm the proper handling of industrial materials and show your scrap came from a legitimate source.
• Bank account confirmation letter in your own name. Cash payment for scrap metal has been phased out in favour of electronic bank transfers under the regulations, so a verifiable bank account is now a required part of your documentation.
• Police affidavit, if you cannot locate original purchase documents. This sworn statement confirms your honest acquisition of the scrap materials.

Having your invoices and NATIS (RC1) forms ready makes the biggest practical difference on the day. Sellers who arrive with clear ownership documents complete their transactions faster than those relying on alternative documents such as a police affidavit.

When do you need to register for VAT as a scrap seller?

uses Value-Added Tax (VAT), not GST. VAT registration with SARS becomes compulsory once your taxable turnover exceeds the SARS registration threshold in any consecutive 12-month period. If your scrap business crosses that figure, registration with SARS becomes mandatory, so check the current SARS threshold against your sales.

Large-scale operations such as factories and recycling businesses must obtain their VAT registration certificate before they can legally sell scrap materials at scale. Your business records of all transactions become essential for accurate tax compliance and government inspection.

Registered sellers must charge VAT on every scrap sale and keep complete records of those transactions. Businesses and contractors operating and the wider should check their current sales figures against the SARS threshold to confirm their registration status.

Small-scale scrap sellers may operate without VAT registration if their annual turnover stays below that limit. That said, it pays to monitor your figures closely. Exceeding the threshold without registering carries penalties from SARS.

Conclusion

Getting your paperwork ready makes selling scrap straightforward and fast. You need identification, proof of ownership, and business documents if you sell commercially.

We request these papers to protect both parties and to comply with national law.

Prepare your vehicle registration, NATIS (RC1) de-registration form, and bank account details before you get a quote from us and visit our yard. Having everything ready means we can weigh your load on a verified weighbridge, complete the paperwork, and pay you by same-day EFT without holdbacks or delays.

Frequently asked questions

1. What documents do you need to sell scrap metal?

You need a valid ID or passport, recent proof of address (such as a utility bill), and your vehicle's licence disc renewal if you're selling a scrap car. Under the Second-Hand Goods Act, we must verify your identity before any transaction, and we're required to keep records of all sales for at least five years.

2. Do I need to find a buyer online, or can I sell straight to your yard?

You can sell straight to us. We buy scrap directly at our yard, weigh it on a verified weighbridge, and pay you same-day by EFT. There is no broker or middleman — just bring your ID and proof of ownership.

3. How do you handle scrap vehicle paperwork?

We handle the documentation with you, from checking your licence disc to completing the required legal forms, including the NATIS (RC1) de-registration. Whether you bring the car to our yard or we collect it, we make sure the paperwork is done correctly.

4. Do I need to create an online account to sell scrap to you?

No. There is no account sign-up to deal with. Just bring your scrap and documents to our yard — we weigh it on a verified weighbridge, verify your paperwork, and pay you by same-day EFT.