- There are increasing calls to raise South Africa’s VAT registration threshold, which has been R1 million since 2009.
- The National Treasury is reviewing the threshold and the VAT administrative framework to simplify and modernize the system.
- Finance Minister Enoch Godongwana highlighted the need to balance administrative benefits with the risk of excluding too many businesses from the tax net.
- Many businesses voluntarily register for VAT below the threshold, but they contribute a small portion of total VAT payments and refunds.
- Vendors with turnover below R2 million account for a significant share of VAT activity, prompting ongoing debate about raising the threshold.
Source: dailyinvestor.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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