- From 1 April 2026, South Africa’s VAT registration thresholds change: compulsory registration is required if taxable supplies exceed R2.3 million in 12 months; voluntary registration is allowed from R120,000.
- VAT is still 15%, but the new thresholds mean SMEs must reassess their VAT registration status, especially if growing.
- VAT registration is based on turnover, not profit.
- SMEs should consider whether voluntary VAT registration makes strategic sense, factoring in client type, pricing, growth, and administrative capacity.
- Voluntary registration may benefit B2B businesses but could add unnecessary admin for others.
Source: companypartners.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.
Latest Posts in "South Africa"
- Key VAT Changes in South Africa’s 2026 Budget: Thresholds, Zero-Rating, Second-Hand Goods, and Compliance
- South African Court Rules Only Parliament Can Change VAT Rate, Not Finance Minister
- South Africa Proposes Repeal of Zero-Rated VAT on Bullion Gold in 2026 Budget
- EFF Applauds Court Ruling Affirming Only Parliament Can Change South Africa’s VAT Rate
- Court Rules Finance Minister Cannot Unilaterally Raise VAT; DA, EFF Hail Decision
