More great news for your small business!
With the new threshold increase:
- VAT registration is not compulsory unless total annual sales are above R2.3 million.
- If your annual sales are less than the new threshold of R2.3 million, you may apply to cancel your registration, if registered for VAT, or SARS may notify you of its intention to cancel your registration.
- You may qualify to subscribe to the Turnover Tax system which means lower tax rates and less administration for your business.
Important: Turnover Tax and VAT are separate tax systems: you can be on Turnover Tax while also being VAT registered (if you choose to register for VAT voluntarily).
Find the steps to deregister for VAT here and more info on Turnover tax registration here.
