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Warning about VAT changes for businesses in South Africa | SA News

Luke Fraser
 ·13 Apr 2026

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The VAT registration threshold limit has increased in South Africa, but SME funder Lula has warned small businesses that deregistering from VAT could lead to an unexpected tax event.

Finance Minister Enoch Godongwana recently announced the VAT registration threshold would be increased from R1 million to R2.3 million. The change came into effect on 1 April 2026.

The change came during the 2026 National Budget, as part of “Tips for the Budget,” where members of the public…

Addo Elephant National Park: Established in 1931, it is the third-largest national
park in South Africa and home to over 600 elephants.

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  1. Fun South African Fact: South Africa is home to the highest commercial bungi jump in the world at 710 feet.