16/06/2026
Are you still accounting like your limit is R1 Million? 🛑
If your South African business is sitting in that exciting growth sweet spot, SARS recently handed you a massive strategic crossroads - and most founders are missing the nuance.
As of April 1, 2026, the compulsory VAT registration threshold has officially jumped from R1 million to R2.3 million. On top of that, the qualifying threshold for Turnover Tax has mirrored this shift, meaning the first R600,000 of turnover is now 100% tax-free. This isn’t just an administrative update. It’s a cash flow game-changer. If your annual turnover sits between R1M and R2.3M, you are now facing a major strategic decision:
🔹 Option A: Apply to Deregister for VAT. If you mainly serve everyday consumers (B2C), deregistering allows you to strip the 15% VAT off your pricing or absorb it into your margins, giving you an instant cash flow or competitive boost. Plus, you cut your administrative paperwork in half.
🔹 Option B: Stay Registered Voluntarily. If your primary clients are large corporates (B2B), they expect tax invoices so they can claim input VAT. Deregistering could unintentionally make you look "too small" or disrupt your corporate supply chain.
The takeaway? There is no one-size-fits-all answer. The R2.3M shift requires a hard look at your client base, your margins, and your 12-month growth forecast.
👇 Let’s spark a conversation in the comments: If your business falls into this new bracket, are you planning to deregister to breathe life into your margins, or are you staying registered to keep your corporate clients happy? Want to figure out which side of the R2.3M line benefits your bottom line most?
Let’s map out your strategy.
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🌐 Website: 🔗 https://www.hmaccounting.online/