VAT Registration Threshold Change: What Practitioners Must Consider when Advising Clients
Duration: 1 hour
Price: R99.00
VAT Registration Threshold Change: What Practitioners Must Consider when Advising Clients
Presenters : Christo Theron
Overview
Following the 2026 Budget Speech, the Minister of Finance announces an increase in the compulsory VAT registration threshold from R1 million to R2.3 million, effective 1 April 2026. This change presents a significant decision point for many small and medium enterprises currently registered for VAT.
Affected businesses must now evaluate whether to remain within the VAT system on a voluntary basis or proceed with deregistration. This decision is complex and requires careful consideration of both financial and operational implications.
This video provides a practical overview of the key factors that should be assessed before exiting the VAT system. It is aimed at tax practitioners and SME owners, emphasizing the risks associated with making decisions based on incomplete or incorrect information.
Video Content
The session covers the following key areas:
- Introduction to the revised VAT registration threshold
- Converting from compulsory to voluntary VAT registration
- Financial implications of deregistering as a VAT vendor
- Key operational considerations impacting the decision
- The VAT deregistration process and requirements
Competencies Developed
Technical Competencies
- Understand the implications of falling below the compulsory VAT registration threshold.
- Evaluate the consequences of deregistering as a VAT vendor.
Operational Competencies
- Perform a financial analysis to assess the impact of VAT deregistration.
- Understand the SARS VAT deregistration process.
- Apply the correct treatment to transactions occurring between the date of the deregistration application and the effective deregistration date.