What should small businesses do when they exceed the VAT threshold?

Under the new rules Small businesses should:

1. Check annual sales – are they above or below R2.3 million?
2. Review VAT status under the updated thresholds and register timeously if you exceed the compulsory threshold.
3. Apply to deregister for VAT if you’re below the compulsory threshold and don’t want to stay registered.
4. Consider registering for Turnover Tax:
   • lower tax rates
   • less admin

5. Monitor your growth in sales – once sales exceed R2.3 million, you must move to normal income tax and VAT registration becomes compulsory.

Find out more info on Turnover Tax and VAT.