Example 1: Annual Turnover of R900 000
| Item | Before 1 April 2026 | On or After 1 April 2026 |
| Annual sales | R900 000 | R900 000 |
| VAT compulsory threshold | R1 000 000 | R2 300 000 |
| Required to register for VAT? | No | No |
Result:
- This business is not required to register for VAT but may register voluntarily.
- This business may choose to convert to the Turnover Tax system which has lower tax rates and less admin/paperwork
Find out more info on Turnover Tax.
Example 2: Annual Turnover of R2 200 000
| Item | Before 1 April 2026 | On or After 1 April 2026 |
| Annual sales | R2 200 000 | R2 200 000 |
| VAT compulsory threshold | R1 000 000 | R2 300 000 |
| Required to register for VAT? | Yes | No |
Result:
- VAT registration is no longer compulsory for this business from 1 April, but you should monitor your annual sales over an uninterrupted 12 month period as the current sales is significantly closer to the compulsory threshold.
- This business may choose to convert to the Turnover Tax system which has lower tax rates and less admin/paperwork
Find out more info on Turnover Tax.
Example 3: Business with Annual Turnover of R2 500 000
| Item | Before 1 April 2026 | On or After 1 April 2026 |
| Annual sales | R2 500 000 | R2 500 000 |
| VAT threshold | R1 000 000 | R2 300 000 |
| Required to register for VAT? | Yes | Yes |
Result:
- VAT registration remains compulsory, as sales exceed the new threshold.
- This business must continue to comply with all the VAT obligations.
Find out more info here.
