What is the VAT registration threshold in South Africa?

# VAT Registration Threshold in South Africa The **compulsory VAT registration threshold** in South Africa is **R1 million** in taxable supplies over any consecutive 12-month period. Any business that exceeds this amount must register for VAT within 21 days. ## Current Thresholds (Until March 2026) - **Compulsory registration**: R1 million in taxable supplies within 12 months - **Voluntary registration**: R50,000 in taxable supplies within 12 months - **Registration deadline**: Within 21 days of exceeding the threshold ## New Thresholds (From 1 April 2026) SARS announced significant increases to VAT registration thresholds: - **Compulsory registration**: **R2.3 million** (increased from R1 million) - **Voluntary registration**: **R120,000** (increased from R50,000) ## How the Threshold Works The R1 million threshold applies to your **taxable supplies** — sales of goods and services that are subject to VAT at 15% or 0%. Exempt supplies (like residential rental income) don't count towards this threshold. **Calculation period**: SARS looks at any rolling 12-month period, not just your financial year. If your sales from March 2024 to February 2025 exceed R1 million, you must register. ## Registration Process 1. **Monitor your turnover** monthly to track when you approach the threshold 2. **Register within 21 days** of exceeding R1 million in taxable supplies 3. **Submit Form VAT101** via SARS eFiling or at a SARS branch 4. **Start charging VAT** from your registration date ## Voluntary Registration Benefits Businesses with turnover between R50,000-R1 million can register voluntarily to: - Claim VAT on business expenses and assets - Appear more established to corporate clients - Streamline cash flow through VAT refunds WeekdayApp automatically tracks VAT registration deadlines and compliance requirements for South African accounting practices, starting at R199/user/month. ## Key Deadlines - **Current threshold**: R1 million until 31 March 2026 - **New threshold**: R2.3 million from 1 April 2026 - **Registration period**: 21 days after exceeding threshold