08/10/2026
Since 1 April 2026, you only have to register for VAT once your taxable supplies pass R2.3 million, up from R1 million. You can also register voluntarily once you pass R120 000, up from R50 000.
For many small businesses, that means VAT registration is now a choice rather than an obligation. But deregistering isn't automatically the right move.
Three things to weigh up:
1. Exit VAT on your assets: When you deregister, you may have to pay VAT on the value of your stock and equipment. That can be a significant once-off cash flow impact.
2. Lost input tax claims: Once you deregister, you can no longer claim back the VAT on your expenses. If you supply VAT-registered businesses, staying registered may still make sense.
3. Admin and systems: Invoicing, pricing and accounting processes all need updating.
The right answer depends on your customers, your costs and your growth plans.
Compimento can model the numbers for your business and help you decide whether to stay registered, deregister or register voluntarily and then handle the SARS process for you.
www.compimento.co.za