South Africa VAT registration: the 2026 thresholds for companies
From 1 April 2026 the compulsory VAT registration threshold rose from R1 million to R2.3 million of taxable supplies in 12 months. The VAT rate stays at 15%.
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"South Africa VAT threshold" and "vat registration threshold" sit high in Google's South African suggestions. The 2026 Budget changed the answer.
The thresholds
| Threshold | Amount |
|---|---|
| Compulsory registration | R2.3 million in 12 months, from 1 April 2026 |
| Voluntary registration | Raised from R50,000; check SARS |
Many online guides still show R1 million. SARS's own FAQ confirms the increase.
The rate
15%. Proposed increases in 2025 were withdrawn.
Exports and imports
- Services to non-residents can be zero rated if the VAT Act's conditions are met.
- Imported services can carry VAT, accounted for by the recipient in certain cases. See South African companies paying offshore SaaS.
Should you register below the threshold?
Voluntary registration lets you claim input VAT. It also brings filing duties. Businesses selling mainly to VAT-registered customers often benefit.
Records
Keep tax invoices, export evidence and bank records matched. SARS audits zero-rated exports.
Paying into South Africa: the local rail
| What | Detail |
|---|---|
| Local rail | Real-time clearing (RTC) and PayShap for instant transfers; EFT for batch payments |
| Run by | BankservAfrica |
| Settlement | RTC and PayShap in seconds; EFT within one to two business days |
Source: BankservAfrica. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
South African exchange control decides whether a South African company may hold proceeds abroad, so Rivet does not pitch offshore accounts to South African-registered companies. Rivet serves registered companies in supported countries, including foreign companies owned by South African founders where eligible. Rivet is not a bank; regulated partner institutions hold the funds. See ZAR business payments.
Questions people ask
What is the VAT threshold in South Africa in 2026?
R2.3 million of taxable supplies in any 12-month period, from 1 April 2026, per SARS.
Can I register voluntarily?
Yes, above the voluntary threshold, which was also raised. Check SARS's current figure.
Are exported services zero rated?
Many services supplied to non-residents are zero rated if conditions in the VAT Act are met.
What is the VAT rate?
15%.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
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