Do I Need to Register for VAT? | Du Preez Tax & Bookkeeping Services

Your taxable supplies

Taxable supplies in the past 12 monthsTotal value of goods/services you've sold, excluding exempt supplies

Expected taxable supplies in the next 12 monthsUnder signed contracts or firm commitments — registration can be required in advance

Current thresholds

Reference

Taxable supplies (12-month period)	Status
Below R120,000	Not required or eligible to register
R120,000 – R2,300,000	May register voluntarily
Above R2,300,000	Must register (compulsory)

These thresholds increased from R50,000 / R1,000,000 to R120,000 / R2,300,000 with effect from 1 April 2026 — the first change to the compulsory threshold in 17 years. The VAT rate itself remains 15%.

Note: Compulsory VAT registration applies once your taxable supplies exceed — or are reasonably expected to exceed — R2.3 million in any consecutive 12-month period (increased from R1 million, effective 1 April 2026). Voluntary registration is available once taxable supplies exceed R120,000 (increased from R50,000), subject to certain requirements. If you're currently registered but now fall below the compulsory threshold, you may apply to deregister — though this has its own consequences worth discussing with us first, including output VAT on assets on hand at deregistration. This is a planning estimate only and not tax advice.