18 September 2026 – With effect from 1 January 2026, supplies made by schools registered under the South African Schools Act, 1996 are exempt from VAT, except to the extent that a school carries on approved welfare activities as a welfare organisation. As a result, affected schools no longer qualify to remain registered as VAT vendors and must apply for cancellation of their VAT registration.
SARS will issue letters to schools to notify them of the legislative change and outline the required actions, supporting documents and submission channel.
Required Actions by Schools
- Affected schools must complete the VAT123e application for cancellation of registration.
- The reason for cancellation under Section A must be indicated as: “All enterprise activities have ceased on 31 December 2025”.
- The total net value of business assets held as at 31 December 2025 must be completed under Section B.
- The completed VAT123e must be emailed to [email protected] with the subject line: “VAT deregistration – Schools”.
- Where a school requires a deferment or instalment arrangement for exit VAT, a written application/payment arrangement request must also be submitted.
For more information see:
- FAQs for operational matters relating to schools exiting the VAT system
- VAT Reference Guide – Schools Exiting the VAT System;
- Media Statement issued to schools.
