- South Africa’s VAT compulsory registration threshold increased from ZAR 1 million to ZAR 2.3 million per year, and the voluntary threshold rose from ZAR 50,000 to ZAR 120,000, effective 1 April 2026.
- SARS said the higher threshold applies to new VAT registration and deregistration requests, but existing VAT registrations will not be automatically cancelled just because a vendor falls below the new compulsory threshold.
- Once legislation is promulgated, SARS may cancel registrations for vendors below the new voluntary threshold, but only after notifying the affected vendors.
- SARS also noted other VAT changes effective 1 April 2026, including rules on refunds to foreign electronic services suppliers on deregistration, delayed VAT refund interest, VAT modernisation, and electronic services supplied through intermediaries.
- Additional amendments cover short-term insurance, debit/credit notes in going concern and reorganisation transactions, zero-rated silver exports, testing services to non-residents, temporary letting by property developers, airtime vouchers used outside South Africa, removal of relief for certain low-value imports, and clarified VAT treatment for housing programme payments and supplies by educational institutions/public schools.
Source: regfollower.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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