On 1 April 2026 the compulsory VAT registration threshold rose from R1 million to R2.3 million in taxable supplies over any rolling 12 months. The voluntary registration floor rose too, from R50,000 to R120,000.
If you're under R2.3 million and not registered
You now have more room before registration becomes compulsory. Staying unregistered keeps your admin lighter. If you sell to consumers, your prices stay 15% lower than they would be with VAT added.
If you registered under the old R1 million rule
You may now be below the compulsory threshold and eligible to deregister. Whether you should depends on who your customers are:
- Customers are mostly VAT vendors (businesses)? Staying registered lets you keep reclaiming input VAT on your costs. Your customers claim back the VAT you charge them.
- Customers are mostly consumers? Deregistering could cut your prices by 15% or lift your margin.
Deregistering can also trigger output VAT on assets you still hold. Work out that exit cost before you apply.
The rolling 12-month test
The test applies to any consecutive 12-month period, whether or not it matches your financial year. A strong few months can push you over R2.3 million mid-year, and you then have just 21 business days to register. Monthly bookkeeping shows your rolling 12-month total as it builds.
Deciding whether to register or deregister
If you're near either threshold, have your figures checked before you register or deregister. Our full VAT registration guide has more detail.