Free VAT decision tool

VAT Deregistration Checker

Check whether cancelling VAT registration may make sense after the 2026 SARS threshold change. The checker weighs turnover, customer mix, input VAT recovery, and asset risk before suggesting your next step.

Updated 18 May 2026 · Current compulsory threshold R2,300,000

Current VAT thresholds for South African businesses

From 1 April 2026, the compulsory VAT registration threshold is R2,300,000 and the voluntary registration threshold is R120,000. If you are below the compulsory threshold, deregistration may be possible, but SARS must still confirm the cancellation.

Compulsory VAT threshold

R2,300,000

For taxable supplies over any consecutive 12-month period.

Voluntary VAT threshold

R120,000

A useful reference when deciding whether to stay registered.

SARS VAT overview SARS Budget 2026 FAQ SARS threshold FAQ

VAT Registration Checker

Check whether registration remains compulsory or voluntary.

VAT Calculator

Calculate VAT inclusive, exclusive, and VAT-only amounts.

VAT Threshold Guide

Read the full threshold, document, and SARS workflow guide.

Need help deciding whether to stay VAT-registered?

Accounter can help you compare input VAT recovery, customer pricing, final VAT return risk, and bookkeeping impact before you submit a cancellation request.

Contact Accounter

What changed on 1 April 2026?

The VAT thresholds increased for the first time in years. This created a new group of businesses that were registered under the old R1 million compulsory threshold but may now be below the current compulsory threshold.

Threshold	Until 31 March 2026	From 1 April 2026
Compulsory registration	R1,000,000	R2,300,000
Voluntary registration	R50,000	R120,000

VAT deregistration FAQs

Common questions about cancelling VAT registration in South Africa.

You may be able to apply for VAT deregistration if your taxable supplies are below the compulsory threshold and are expected to remain below it, but deregistration is not automatic. SARS must confirm the cancellation date, and you must keep accounting for VAT until the final tax period SARS advises.

No. Businesses that are now below the new compulsory threshold do not have to cancel VAT registration. Staying registered may still make sense if your customers are VAT vendors, your input VAT recovery is material, or you expect turnover to grow again.

VAT123e is the SARS cancellation of registration form used when a VAT vendor requests cancellation. SARS may require supporting information before confirming the effective cancellation date.

The biggest practical risk is output VAT on a deemed supply of assets or stock on hand at deregistration, especially where input VAT was previously claimed. Prepare an asset and stock schedule before submitting the cancellation request.

Possibly, but only after comparing the numbers. Consumer customers generally cannot claim input VAT, so deregistration can improve price competitiveness. However, you may lose input VAT claims and still need to settle any final VAT liabilities.

No. This checker gives decision support based on the information you enter and current public SARS threshold information. Ask a registered tax practitioner or accountant before submitting a VAT cancellation request.

Navigation

Tools

Support