Key VAT Changes in South Africa’s 2026 Budget: Thresholds, Zero-Rating, Second-Hand Goods, and Compliance

• The compulsory VAT registration threshold is increased from R1 million to R2.3 million.
• Zero-rating for services in SEZs/CCAEs will require services to be physically rendered within the area.
• Zero-rating of gold supplied to listed entities will be repealed due to complexity.
• Notional input tax claims on second-hand goods are restricted to the period of supply, with stricter documentation and invoice requirements to combat fraud.
• VAT on electronic services will default to intermediaries unless otherwise agreed, and all VAT vendors must now submit returns and payments by the last business day of the month.

Source: fasken.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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