Do I have to register for VAT after the new threshold?

From 1 April 2026, the VAT registration thresholds in South Africa changed significantly. If you have been unsure whether you need to register, this guide is for you.

The new thresholds

The compulsory registration threshold is now R2.3 million in taxable supplies in any 12-month period. Before, it was R1 million.

The voluntary registration threshold is now R120 000. Before, it was R50 000.

When you must register

If your taxable supplies exceed R2.3 million in any 12 consecutive months, or you expect them to, you must register. You should apply within 21 business days of exceeding the threshold. Business days exclude weekends and public holidays.

When you may register

If your taxable supplies are above R120 000 but below R2.3 million, you may choose to register voluntarily. This can help if most of your customers are VAT-registered businesses that can claim the VAT back, or if you have large VAT-able expenses. It can be less helpful if you sell mainly to individuals.

Filing once registered

Most small vendors file every two months. Vendors with turnover above R30 million file monthly. When filing via eFiling, the return and payment are due on the last business day of the month after the period ends. Manual returns are due by the 25th.

Late payment attracts a 10 percent penalty plus interest, so it helps to plan returns ahead of the due date.

If you are already registered

The higher threshold does not automatically deregister anyone. If you are registered and now fall below the new compulsory threshold, it is worth a careful conversation before making any change.

What to do now

Add up your taxable supplies for the last 12 months and look at the months ahead. Compare that to R2.3 million. If you are close, keep an eye on it monthly.

If you would like someone to look at your numbers and explain your options, we are happy to help.