VAT Registration Threshold Checker
Answer three questions and find out whether you must register for VAT, may register voluntarily, or should stay below the threshold — based on the South African VAT Act thresholds effective 1 April 2026.
Updated 17 April 2026 · Effective thresholds from 1 April 2026
Current South African VAT registration thresholds
Effective from 1 April 2026. Source: SARS Value-Added Tax.
Compulsory registration
R2,300,000+
in any consecutive 12-month period
Voluntary registration
R120,000+
past 12 months or expected next 12 months
What changed on 1 April 2026
| Threshold | Until 31 March 2026 | From 1 April 2026 |
|---|---|---|
| Compulsory | R1,000,000 | R2,300,000 |
| Voluntary | R50,000 | R120,000 |
Useful next steps
VAT Calculator
Calculate VAT inclusive / exclusive amounts at 15%.
Turnover Tax Calculator
Compare VAT against the small-business Turnover Tax regime.
VAT Deregistration Checker
Check whether staying registered or cancelling makes more sense.
VAT Registration Guide
Full walkthrough — thresholds, timing, documents, SARS steps.
Track your turnover automatically
Accounter tracks your rolling 12-month taxable supplies in real time, so you know the moment you approach the compulsory threshold — no surprise SARS penalties.
Get started freeVAT registration FAQs
Common questions about the South African VAT registration threshold.
From 1 April 2026, the compulsory VAT registration threshold in South Africa is R2,300,000 in taxable supplies over any consecutive 12-month period. The voluntary registration threshold is R120,000. Before 1 April 2026, the thresholds were R1,000,000 compulsory and R50,000 voluntary.
Compulsory registration is triggered the moment your taxable supplies exceed R2,300,000 in any consecutive 12-month window — it is not tied to your financial year-end. It is also triggered forward-looking: if you have signed a contract or won a tender that will push you over the threshold in the next 12 months, you must register before those supplies are made. You have 21 business days from the triggering event to submit a VAT101 application.
Voluntary registration makes sense when your input VAT recovery is material (common for retailers, manufacturers, and anyone with significant stock or capital purchases), or when most of your customers are themselves VAT-registered (so the 15% addition is neutral to them). It is usually not worth it if you have low input VAT and mostly consumer clients, because the 15% effectively becomes a price increase unless you absorb it.
No. Deregistration is optional, not mandatory. Many businesses that were compulsorily registered before 1 April 2026 are now below the new R2.3 million threshold but choose to stay registered to continue claiming input VAT. Be aware that if you do deregister, SARS treats assets on hand (including capital items on which you claimed input VAT) as a deemed supply — meaning an output-VAT liability on deregistration.
SARS typically processes VAT101 applications within 21 business days once all supporting documents are submitted. Delays are most commonly caused by missing supporting documents (proof of banking, proof of address, evidence of taxable supplies) or by incomplete company information on eFiling.
For VAT registration, only "taxable supplies" count — that is, supplies of goods or services that are standard-rated, zero-rated, or otherwise covered by the VAT Act. Exempt supplies (for example, residential rent, certain financial services, and educational services) do NOT count toward the threshold. Most normal trading businesses have taxable supplies roughly equal to their turnover, but there are exceptions — check with an accountant if you deal in exempt supplies.