Do I need to register for VAT?
1 point we are still verifying
- Confirm promulgation of the VAT registration threshold amendment.
Your details
You may register voluntarily
Your taxable sales are above R120 000 but not above R2 300 000, so registration is optional. Registering lets you claim VAT on business purchases, but you must then add 15% to your prices, issue tax invoices and file VAT returns.
- Compulsory from 1 April 2026
- over R2 300 000
- Voluntary from 1 April 2026
- over R120 000
- Before 1 April 2026
- R1 000 000 and R50 000
If you must register
- Apply to SARS (on eFiling, or by booking an appointment) as soon as you go over the limit or expect to.
- From your registration date, charge 15% VAT on taxable sales and issue tax invoices.
- Submit VAT returns for each tax period and pay over the VAT on time.
Turnover tax and VAT
Since the turnover tax limit is also R2 300 000, a micro business on turnover tax will usually not have to register for VAT, but it may choose to.
Need to add or remove VAT from a price? Use the VAT calculator on RandRight.
Frequently asked questions
What is the VAT registration threshold in 2026?
From 1 April 2026 you must register when your taxable supplies in any 12-month period exceed R2 300 000, or are likely to. Before that the limit was R1 000 000.
Can I register for VAT voluntarily?
Yes, if your taxable supplies in the past 12 months were more than R120 000 (up from R50 000). It can help if most of your customers are VAT vendors who claim the VAT back.
What counts as taxable supplies?
Sales of goods and services that carry VAT at 15% or 0% (zero-rated). Exempt supplies such as residential rent and most financial services do not count.
I was registered under the old R1 million limit. Can I deregister?
SARS says vendors below the new compulsory threshold may apply to cancel their registration, and that it will contact vendors below the new voluntary threshold once the law is promulgated.
Is the new threshold law yet?
SARS has applied the new thresholds to registrations since 1 April 2026, although the amending legislation had not been promulgated when SARS published its Budget 2026 FAQ. We will update this page when it is.