VAT Threshold 2026 for South Africa
Today’s 2026 National Budget Speech delivered by Finance Minister Enoch Godongwana brings excellent news for South Africa’s small and medium-sized enterprises (SMEs). The compulsory VAT registration threshold has been raised from R1 million to R2.3 million.
This is the first adjustment to the threshold since 2009. For 17 years, inflation pushed many growing businesses over the old limit without a corresponding increase in real profitability. The new R2.3 million threshold finally catches up with the cost of doing business and delivers meaningful relief. read more
February 25, 2026
