What’s New at SARS

1 April 2026 — The South African Revenue Service (SARS) has collected R2, 010 trillion and thus surpassed the R2 trillion in net revenue collection for the 2025/26 financial year, crossing a historic point in three decades. Over the past seven years, revenue collections have grown at a compound annual growth rate (CAGR) of 5.8%, with a tax-to-GDP ratio of 25.9%, and tax buoyancy ratio of 1.70. Since 1997, of the R25.1 trillion collected, R11.5 trillion was collected in the last seven years. This was achieved despite the most daunting challenges of the ravaging COVID-19 pandemic, loadshedding and a sluggish economy.

The improved revenue collections result is R24.7 billion higher than estimated a year ago as announced by the Minister at Budget 2025. This achievement reflects the focused and attentive work of SARS in its compliance initiatives; improved administrative efficiencies; and a marginal contribution from the mining sector. The revenue collection enabled the Minister of Finance to save the nation additional VAT increase as he had originally communicated.

SARS Commissioner Edward Kieswetter emphasised that “collecting over R2 trillion is not an accident, but the outcome of the more than 14 500 employees who diligently perform millions of activities meticulously to achieve this record collection. Every rand not only helps build a capable state that honours the social contract but also enables the state to deliver for all South Africans and strengthen fiscal integrity of South Africa.”

As of 31 March 2026, SARS collected net revenue of R2 010.3 billion over the previous fiscal year, representing 8.4% in growth from the previous fiscal year, surpassing the 5.4% nominal GDP growth.

When the  revised revenue estimate for the 2025/26 financial year was set, it required year‑on‑year revenue growth of R151.7 billion (8.2%). SARS continues to demonstrate discipline and consistency in execution. This has led to revenue maximisation, improvement in voluntary compliance, and facilitation of legitimate trade. This figure shows the sustained resilience of SARS’s revenue performance over recent years. These augurs well for our fiscal health.

These results have been achieved despite the challenges of a sluggish economy, geopolitical tensions, global supply-chain disruptions, and the proliferation of the illicit economy.

By the end of March 2026, several major tax types recorded surpluses, boosting overall revenue performance:

• Domestic VAT collections reached 0 billion, up 7.6% year-on-year. Of this amount, R291. 4 billion (48.2%) was paid by large business vendors, while R312.6 billion (51.8%) was contributed by non‑large vendors, predominantly within the finance sector. Assumptions for domestic VAT growth were 5.3% at Budget 2025, 6.8% at MTBPS, and 7.0% at Budget 2026, with actual performance exceeding earlier expectations. Growth was supported by improved consumer sentiment; lower interest rates that eased borrowing conditions; contained inflation; and withdrawals under the two‑pot retirement system. In addition, R37 billion in cash was collected through targeted SARS compliance interventions. The VAT Voluntary Compliance Index improved markedly, increasing from 66.59% to 67.19%, signalling stronger year-on-year compliance behaviour.
• CIT provisional tax collections amounted to 5 billion, delivering 9.9% year‑on‑year growth and falling short of the revised estimate by R1.3 billion. Growth was broad‑based, with large companies expanding by 7.5% (R16.1 billion), while SMMEs recorded stronger growth of 14.7% (R16.0 billion). The assumption for net CIT (excluding interest) was 6.3% at Budget 2025, 7.7% at MTBPS, and 8.7% at Budget 2026.

These surpluses were partially offset by deficits in key tax types, reflecting uneven economic conditions and specific sectoral pressures.

• Imports rose slightly by 0.1% in 2025/26. As a result, Import VAT increased by R5.6 billion (2.2%) but was below estimates, while import duties grew by
  1 billion (6.6%), exceeding estimates by R1.2 billion (1.5%). Growth was mainly due to passenger vehicles. These trends suggest a market recovery, possibly helped by easier monetary policy and improved consumer sentiment.
• PAYE collections totalled 0 billion, recording growth of R59.9 billion (8.5%) versus the previous year, and exceeding the revised estimates by
  R4.0 billion (0.5%). PAYE benefited from modest nominal wage growth combined with fiscal drag (from the non‑adjustment of PIT brackets and rebates) despite low employment growth. Additionally, revenue resulted from Two-pot PAYE collections totalling R11.0 billion, slightly below last year’s R11.9 billion.
• VAT refunds amounting to 1 billion were paid, reflecting year‑on‑year growth of R5.6 billion (1.5%). Growth assumptions for VAT refunds were revised down from 5.4% at Budget 2025 to 1.6% at Budget 2026. The largest refunds were paid to the mining, finance, and manufacturing sectors, driven mainly by export activity and rising local input costs. Preliminary analysis indicates that SARS prevented an estimated R75.0 billion in leakage through focused syndicated-crime investigations, investigative audits, and verification processes.

Despite these efforts, a significant threat to optimal revenue collection remains. The illicit economy continues to drain the country’s resources, distort competition, and undermine public confidence in the tax system. Activities such as smuggling; customs and excise fraud; under‑declaration; counterfeit trade; fuel and tobacco syndicates; and organised tax crime divert resources away from essential public services and place compliant taxpayers and legitimate businesses at a disadvantage. SARS estimates that the fiscus loses well over R100 billion in revenue each year to the illicit economy.

“People who buy illicit goods often believe they are getting a bargain,” the Commissioner said. “In reality, they are funding the destruction of legitimate businesses and jobs shrinking the country’s tax base, and weakening the very institutions meant to serve them.” The Commissioner stressed that every illicit transaction deprives the fiscus of revenue needed for schools, hospitals, and public infrastructure. “There is no such thing as a cheap deal in the illicit economy and the real cost is paid by society at large. We will not allow criminal syndicates to hollow out the tax system. SARS, working with other law-enforcement agencies, is determined to disrupt, dismantle, and shut down illicit trading networks, and to make non‑compliance hard and costly.”

Voluntary compliance remains central to inculcating a culture of fiscal citizenship, strengthening SARS, and safeguarding the integrity of the tax and customs system. Although most taxpayers comply voluntarily, deliberate non‑compliance and organised criminal activity persist, undermining the integrity of the tax system.

Key compliance drivers during the year included:

• Debt cash collections.
• Preventing impermissible and fraudulent refund claims.
• Voluntary disclosure interventions to regularise tax affairs.
• Countering syndicated tax and customs crimes, valuation fraud, and customs seizures.
• Applying data science and AI to identify and mitigate compliance risks to safeguard the fiscus.

By the end of March 2026, a preliminary R316.39 billion was secured from identifiable compliance activities, comprising R164.59 billion in cash collections and R151.81 billion in leakage protection. This compares with R304.04 billion secured in the previous year, yielding year‑on‑year net growth of R12.4 billion (4.1%). Compliance-revenue efforts represent 15.7% of net revenue collections, compared to 16.4% in the previous year.

Enhanced debt‑collection initiatives further strengthened compliance outcomes. During 2025/26, debt collections amounted to R110.9 billion, while targeted Voluntary Disclosures (VDP) compliance initiatives supported a broader and more sustainable revenue base, delivering R6.8 billion.

Over the past seven years, SARS has substantially implemented the Nugent Commission and aligned its reforms with the recommendations of the Davis Tax Committee, using tax-gap analysis and targeted interventions to identify high-risk areas and fix systemic weaknesses.

Today, SARS is formally sharing Modernisation 3.0 with the public. We envisage a future where taxpayers and their representatives will be provided with a Unique Digital Identity, which will use biometric and two-factor authentication to secure all interactions with SARS. This will empower taxpayers to have a comprehensive view of all their accounts with SARS, enabling them to change and update their status and pay as needed. This process will encourage self-reliance. Similarly, an empowered SARS officer will have access to the system and could advance and resolve taxpayers’ problems. This system will be undergirded by an instant-payment system supported by the South African Reserve Bank, which will gradually reduce the amount of cash in circulation.

Also central to Modernisation 3.0 is an intelligent case-management system, which will automate routine work, use big data, and apply AI to foster voluntary compliance. Ultimately, the process will see modernisation of the VAT system, that will enable automatic assessment of VAT, while customs modernisation will support the no-stop border-post concept involving the whole of government and strengthen our work with Border Management Agencies.

Modernisation 3.0 builds on the impressive work of SARS Auto Assessment, thanks to which more than 6 million taxpayers did not have to do anything if satisfied with their automatic SARS tax assessment. This is the manifestation of the ideal world in which tax just happens.

Since its inception in 1994, SARS has collected R25.4 trillion in net tax revenue. Revenue collections have increased from R114 billion in 1994/95 to more than R2 trillion in 2025/26. SARS has remained inextricably linked to our 32-year-old democracy. The link speaks to the fundamental role SARS plays in discharging its legal mandate, as well as its “Higher Purpose” to serve the wellbeing of South Africans. The organisation continues its journey to become a reimagined, smart, modern SARS that is trusted and admired by all, anchored in its strategic intent to foster voluntary compliance.

Although progress has been substantial, SARS recognises that further gains are possible. Continued engagement with taxpayers and traders remains essential to sustaining voluntary compliance, trust, and long‑term revenue growth. SARS is applying technology, machine-learning algorithms, agentic AI, and sophisticated data science to improve taxpayers’ and traders’ compliance and improve service experience, where the “best service is no service at all” and “tax just happens”, as witnessed by more than 6 million taxpayers last year who were auto-assessed.

Commissioner Kieswetter reflected on these achievements as his tenure concludes. “As I come to the end of the seven years of national service, I recall the President’s challenge to those who cared about the future of South Africa and the generations to come to step forward, to leave behind a comfortable life of retirement, and take their place at the forefront of the struggle where real change happens. It was a call to service, a call to restore credibility and the capability of our damaged institutions, succinctly captured in the call Thuma Mina.”

“I want to thank the President, the Minister, and all South Africans for affording me the rare privilege to make my humble contribution to the wellbeing of our country and its people. I am filled with immense pride that thankfully, together with the help of the people at SARS, we have given our best to the nation.”

“The record achievement we reached today is because of all compliant taxpayers;
I would like to thank them for their fiscal citizenship and contribution to help the most vulnerable in our society”, the Commissioner said.

“The 14 500 SARS employees are the mainstay of our organisation, the true heroes and heroines of the work we perform. I salute all of them and express my sincerest gratitude for their unstinting support over the past seven years”.

For further information, contact SARS at [email protected].

END

1 April 2026 – Customs and Excise Act, 1964: Publication details for tariff amendments notices R7340 and R7341, as published in Government Gazette 54445 of 1 April 2026, are now available.

1 April 2026 – In this issue we bring you the key changes for the 2026/2027 PAYE Employer Reconciliation BRS, including new rules for long service awards, death compensation during employment, and an updated source code for travel reimbursements. Discover the latest upgrades to e@syFile™ Employer, with enhanced bulk payment functionality for ITA88s, and learn about the newly opened Global Minimum Tax registration now available on SARS eFiling.

31 March 2026 – The following binding private rulings were published:

• Binding Private Ruling 427 – Premium paid for right of use
• Binding Private Ruling 426 – Residential accommodation
• Binding Private Ruling 425 – Rehabilitation of mining property

31 March 2026 – Value-Added Tax Act, 1991: The following sanitised VAT rulings were published:

• VAT Ruling 019 – Consideration
• VAT Ruling 018 – Apportionment
• VAT Ruling 017 – VAT treatment of auctioneering artwork for non-residents
• VAT Ruling 016 – Apportionment
• VAT Ruling 015 – Supply of student accommodation

31 March 2026 – South Africa recorded a preliminary trade balance surplus of R36.9 billion in February 2026. This surplus was attributable to exports of R168.1 billion and imports of R131.2 billion, inclusive of trade with Botswana, Eswatini, Lesotho and Namibia (BELN).

See the full Media Release here.

Or visit the Trade Statistics webpage.

31 March 2026 – Customs and Excise Act, 1964: The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the amendments to –

• Part 5A of Schedule No. 1, to provide for a reduction of 300c/li in the rate of the general fuel levy from 410c/li to 110c/li on petrol and a reduction of 300c/li from 393c/li to 93c/li on diesel, in order to give effect to the announcement by the Minister of Finance on 31 March 2026; and
• Part 3 of Schedule No. 6, as a consequence of the reduction in the general fuel levy as announced by the Minister of Finance on 31 March 2026; the diesel refund provisions are adjusted accordingly.

Publication details will be made available later

31 March 2026 – Income Tax Act, 1962

• Interpretation Note 78 (Issue 2) – Allowance for Future Expenditure on Contracts

31 March 2026 – Income Tax Act 1962

• Interpretation Note 78 – Allowance for Future Expenditure on Contracts

27 March 2026 – Tax Administration Act, 2011

•  Public Notice – Listing incidences of non-compliance that are subject to a fixed amount penalty in accordance with section 210(2) and 211

27 March 2026 – SARS is live at the Rand Show for five days! Visit the SARS stand at Rand Show 2026 in Hall 5, Johannesburg Expo Centre NASREC from 2–6 April to experience our digital service channels and receive expert tax support. Get assistance with eFiling, presentations on customs online traveller declaration, and compliance, plus enjoy demos, interactive activities, tax tips, and giveaways—all designed to make tax easier for South Africans. Discover more about Excise services, and see how SARS is making tax smart, simple, and user-friendly for everyone.

For updates, follow us on X, LinkedIn, Facebook, and WhatsApp.

#SARSAtYourService #SARSAtRandShow2026 #TaxMadeEasy

27 March 2026 – Customs and Excise Act, 1964: Publication details for tariff amendments notices R7301, R7302, R7303, R7304, R7297, R7298, R7299 and R7300, as published in Government Gazette 54412 of 27 March 2026, are now available.

27 March 2026 – Income Tax Act, 1962

• Interpretation Note 122 (Issue 2) – Public Benefit Activity: Bid to host or hosting of any international event

27 March 2026 – Income Tax Act 1962

• Interpretation Note 122 – Public Benefit Activity: Bid to host or hosting of any international event

27 March 2026 – The Employer Annual Declaration season runs from 1 April to 31 May 2026. During this time, employers are legally required to submit their EMP501 reconciliation with accurate and up-to-date payroll and tax information for their employees, including valid Income Tax Reference Numbers where applicable.

This information plays a key role in employee tax assessments, including Auto Assessments and pre-populated Income Tax Returns (ITR12). Submitting incorrect or incomplete details — or missing the deadline — can result in:

• delays,
• additional rework,
• employer penalties, and
• unexpected tax outcomes for employees.

Extra Support for Employers in 2026

To make compliance easier and help improve submission quality, SARS is rolling out technical clinics in 2026. These clinics offer practical, hands-on guidance to help employers and third-party data providers:

• avoid common errors before submitting the reconciliation,
• improve data quality, and
• reduce the need for rework.

SARS will also be hosting live Q&A sessions on social media during the Employer Filing Season. These sessions give employers a chance to ask questions and get clarity in real time.

More information on dates, topics, and how to take part will be shared soon. Employers are encouraged to stay up to date by following official SARS communication channels.

For more detail, visit the Pay-As-You-Earn webpage.

26 March 2026 – The Limpopo mobile tax unit and  tax workshop schedules for April 2026 are now available.

26 March 2026 – Customs and Excise Act, 1964: The tariff amendments notices, scheduled for publication in the Government Gazette, relate to the following amendments:

Schedule No. 1 to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SADC-EU EPA)

• With retrospective effect from 1 September 2025 up to and including 31 December 2025
• With retrospective effect from 1 January 2026

Schedule No. 1 to implement the revised Tariff Rate Quota in terms of the Economic Partnership Agreement (SACUM-UK EPA)

• With retrospective effect from 1 September 2025 up to and including 31 December 2025
• With retrospective effect from 1 January 2026

Budget proposals

• With retrospective effect from 1 January 2026
  • Part 3F of Schedule No. 1, by an increase of R72 per tonne in the rate of environmental levy on carbon dioxide equivalent from R236 to R308 per tonne to give effect to the Budget proposals announced by the Minister of Finance on 25 February 2026

• With effect from 1 April 2026
  • Part 5A of Schedule No. 1, to provide for:
    • an increase of 9c/li in the rate of the general fuel levy from 401c/li to 410c/li on petrol and an increase of 8c/li from 385c/li to 393c/li on diesel;
    • the substitution to Note 8; and
    • an increase of 5c/li in the carbon fuel levy from 14c/li to 19c/li for petrol and an increase of 6c/li from 17c/li to 23c/li for diesel, respectively,

in order to give effect to the Budget proposals announced by the Minister of Finance on 25 February 2026

• • Part 5B of Schedule No. 1, by an increase of 7c/li in the RAF levy from 218c/li to 225c/li on both petrol and diesel, to give effect to the Budget proposals announced by the Minister of Finance on 25 February 2026
  • Part 3 of Schedule No. 6, as a consequence of the increase in the general fuel levy and RAF levy as announced by the Minister of Finance in his budget speech of 25 February 2026; the diesel refund provisions are adjusted accordingly

Publication details will be made available later

25 March 2026 – Following the earlier communication dated 12 December 2025 (reference number 7/6/1/1/2/PQ/DRS/2025/Dec-1), SARS informs stakeholders that the new Diesel Refund Registration System will open later than initially communicated. Although good progress has been made in developing the modernised system, additional time is required to pilot and test the system to ensure it is stable, secure, and functional.

For more information see the letter to external stakeholders.

24 March 2026 – Income Tax Act, 1962

• Draft Interpretation Note – Income Tax Exemption: Bargaining Councils

Due date for comment: 8 May 2026