25/03/2026
SARS has published an FAQ addressing the increase in the VAT registration threshold, effective 1 April 2026:
https://www.sars.gov.za/about/sars-tax-and-customs-system/budget/budget-2026-frequently-asked-questions/
Based on practitioner concerns, the following clarifications are particularly important:
SARS will only automatically cancel a VAT registration if the value of taxable supplies for the past 12 months is below R120,000.
If you disagree with an automatic cancellation, an objection must be submitted.
Where taxable supplies are expected to be below R2.3 million for the next 12 months but above R120,000, the vendor may apply for deregistration – SARS will not cancel the registration automatically.
VAT must continue to be accounted for until the registration is formally cancelled.
When considering deregistration, take into account the potential deemed exit VAT implications, as well as commercial considerations – some customers prefer trading with VAT‑registered vendors.
Ensure that all previously unclaimed input VAT is claimed in the final VAT return, as no further input VAT may be claimed thereafter.
If taxable supplies exceeded R1 million before 1 April 2026, the taxpayer remains liable to register. Where registration did not occur, SARS indicates that VDP should be considered.
Each case still requires careful evaluation based on the vendor’s specific facts and trading outlook.
SAIT members are encouraged to join SAIT Communities to engage with fellow practitioners, share practical insights, and stay informed on SARS developments like these.
