BUSINESS GUIDE
VAT registration threshold in South Africa
From 1 April 2026, the compulsory VAT-registration threshold is R2.3 million in taxable supplies in any consecutive 12-month period, or where those supplies are likely to exceed that amount in the next 12 months. The threshold concerns taxable supplies, not simply every amount that enters a bank account.
Compulsory registration
According to SARS, registration is compulsory where the R2.3 million threshold has been exceeded or is likely to be exceeded. A written contractual obligation can also trigger the requirement where it will cause taxable supplies to exceed the threshold. SARS says an application for compulsory registration must be made within 21 business days from the date the threshold is or will be exceeded.
Voluntary registration
SARS states that voluntary registration may be possible in certain circumstances where taxable supplies have exceeded R120,000 in the preceding 12 months. There are additional requirements and exceptions, so meeting a number alone should not be treated as an automatic approval.
Before you register
- Confirm whether you are conducting an enterprise and whether your supplies are taxable.
- Keep sales records over a rolling 12-month period.
- Consider the record-keeping, invoicing and VAT-return obligations.
- Ask an accountant or registered tax practitioner to review your position.
Official source
See SARS’s current VAT registration guidance for criteria, deadlines and application details.