- SARS told VAT-registered schools to apply for VAT deregistration because, from 1 January 2026, all school supplies are VAT-exempt except qualifying welfare activities.
- Schools must stop charging VAT and claiming input tax on supplies from that date, and correct any VAT returns filed after 1 January 2026 if needed.
- Deregistration requires Form VAT123e, using the reason “All enterprise activities have ceased on 31 December 2025,” submitted by email or via SARS eBooking.
- Schools must also account for exit VAT on enterprise assets held on 31 December 2025, payable from 1 January 2027, with payment allowed over 12 monthly installments or another agreed plan.
- Schools that want to remain VAT vendors for qualifying welfare activities must first get a written ruling from the SARS Commissioner.
Source: sars.gov.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.
Latest Posts in "South Africa"
- Tax Court Allows Late VAT Input Tax Amendment on New Factual Grounds
- South Africa SARS Clarifies Higher VAT Registration Thresholds and Deregistration Rules
- Documentary Requirements for Silver Exports Amended for VAT Parity
- Zero-Rating Testing Services and Clinical Trials for Non-Residents
- VAT Treatment of Temporary Residential Letting by Property Developers
