South Africa's VAT framework for electronic services now has a new registration threshold for non-resident providers, effective from 1 April 2026. The threshold rises to ZAR 2.3 million on a 12-month basis, with a voluntary threshold of ZAR 120 000, and non-resident providers must register by the end of any month where supplies exceed the threshold.
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EY · 4 months ago
EY discusses the e-invoicing requirements for South Africa, outlining what CFOs and COOs should consider to comply with the new digital invoicing rules.
SABC News · 4 months ago
The Western Cape High Court declared Section 7 of South Africa's VAT Act unconstitutional, ruling that the Minister of Finance cannot unilaterally raise the VAT rate. The court imposed a 12‑month period before Parliament can confirm or reject any VAT rate adjustments, and the proposed 1% increase announced in the 2025 Budget Speech was withdrawn.
BusinessDay · 4 months ago
Finance Minister Enoch Godongwana raised South Africa’s VAT registration threshold from R1 million to R2.3 million in the 2026 budget speech, easing compliance burdens for SMBs and encouraging digital growth. The move removes a key growth constraint and signals a broader push toward digitalisation and innovation.
Daily Dispatch · 4 months ago
South Africa’s 2026 Budget lifts the VAT registration threshold from R1 million to R2.3 million, easing compliance for small businesses. The announcement also notes a 21‑cent per litre increase in fuel levies, while the threshold had remained frozen for fifteen years. The move is seen as a relief for SMEs but is framed within broader fiscal and infrastructure challenges.
Moneyweb · 4 months ago
South Africa’s Finance Minister announced that the VAT registration threshold will rise from R1 million to R2.3 million, and the turnover‑tax limit for very small businesses will also be lifted to R2.3 million. The change, first made in 2009, also removes the restriction on tax year‑end dates, easing compliance burdens for small firms. The adjustment aligns with inflation expectations and aims to encourage entrepreneurship.
Moonstone · 4 months ago
South Africa will raise the mandatory VAT registration threshold from R1 million to R2.3 million and the voluntary threshold from R50 000 to R120 000, effective 1 April 2026. The annual turnover tax limit will also rise from R1 million to R2.3 million. These changes aim to adjust for inflation and support small businesses.
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Key Takeaways
From 1 April 2026, South Africa's VAT regulations set the registration threshold for non-resident providers of electronic services at ZAR 2.3 million on a 12-month basis.
Non-resident providers must register by the end of any month in which their taxable supplies exceed the threshold, as required by South Africa's VAT regulations effective from 1 April 2026.
The voluntary registration threshold for non-resident providers in South Africa is ZAR 120 000, effective from 1 April 2026.
The new registration threshold of ZAR 2.3 million for non-resident providers took effect on 1 April 2026 under South Africa's VAT regulations.
South Africa requires non-resident providers of electronic services to appoint a local representative when registering for VAT, as stipulated by the VAT regulations effective from 1 April 2026.
Primary source
Read the full article at 1stopVATThis summary was published on VATfaqs.com on 8 July 2026. It relates to VAT developments in South Africa. The original source is 1stopVAT.
