- Sars identified nearly 50,000 businesses, mainly small businesses and spaza shops, evading mandatory VAT registration despite meeting the revenue threshold.
- In the 2025/26 financial year, almost 12,000 businesses were forcibly registered for VAT, resulting in an additional R500 million collected.
- Most forced registrations occurred in Gauteng and the Eastern Cape, accounting for 87% of new registrations.
- Sars uses data from various sources and field audits to track non-compliance and will raise the VAT registration threshold from R1 million to R2.3 million from April 1.
- The finance ministry does not track VAT compliance by nationality and warned against stoking xenophobia by focusing on foreign-owned businesses.
Source: citizen.co.za
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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