Source: https://rivet.global/blog/south-africa-vat-registration-for-companies
Published: 2026-11-01 · Updated: 2026-11-01 · By Alexia M.

# South Africa VAT registration: the 2026 thresholds for companies

South African VAT for companies in 2026: the compulsory threshold raised to R2.3 million, the voluntary threshold, the 15% rate, exports and imported services.

## Key takeaways

- SARS says the compulsory VAT registration threshold increased from R1 million to R2.3 million of taxable supplies in 12 months from 1 April 2026.
- The voluntary registration threshold also rose; check SARS for the current figure.
- The VAT rate is 15%.
- Exported services can be zero rated when conditions are met; imported services can carry VAT for non-vendors.

"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 Proposed increases in 2025 were withdrawn.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](/blog/south-africa-companies-paying-offshore-saas-vat-imported-services).

## 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](https://www.bankservafrica.com/). 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](/blog/zar-business-payments).

## Questions

### 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%.