VAT -- Thresholds & Rate 2026/27
VAT -- Thresholds & Rate 2026/27
When you must register for VAT, when you may, and the rate. Budget 2026 reset the thresholds for the first time in 17 years -- the old R1 million figure is out of date.
VAT registration
| Compulsory registration | R2.3 million turnover in any 12 months (from 1 April 2026) |
| Voluntary registration | From R120,000 turnover (from 1 April 2026) |
| Previous thresholds | R1 million compulsory / R50,000 voluntary (now stale) |
The rate
| Standard VAT rate | 15% |
| 2025 proposed hikes (15.5% / 16%) | Reversed -- the rate stays 15% |
| VAT in a VAT-inclusive price | 15/115ths of the total |
If you crossed the old threshold
- A business registered under the old R1 million rule does NOT auto-deregister -- you must apply to SARS to deregister if you now want to fall out
Guidance only -- not tax advice. The threshold reset (R2.3 million compulsory / R120,000 voluntary) took effect 1 April 2026 -- the first change in 17 years. Verify at sars.gov.za.
Sources: SARS VAT registration · National Treasury Budget 2026 · SA rate spine (Cluster A verified)
SiteKiln provides general guidance only. This is not legal, tax, financial or professional advice. Always verify information and seek professional advice if unsure. © SiteKiln 2026