Budget 2026 FAQs Released by SARS: VAT Threshold Shift Explained
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SARS has released its Budget 2026 FAQs on the VAT threshold increase and various other changes that needs immediate action from accountants. Here’s the practical guidance SARS is giving and how to apply it:
Check who still needs to be registered
Some clients may fall below the new threshold—but deregistration is a decision, not an automatic step.
Watch for SARS deregistration notices
If SARS flags a client for cancellation, you need to respond and manage the process properly.
Don’t stop VAT too early
Clients must keep charging and submitting VAT until SARS officially cancels the registration.
Prepare for the deregistration tax hit
On exit, SARS treats assets and stock as if they were sold—this creates a VAT liability in the final return.
Get the final VAT return right
Any under-declaration can trigger penalties. This is a high-risk area.
Fix input VAT issues
Adjust for unpaid suppliers and check if any legitimate input claims were missed.
Assess if deregistration actually makes sense
Some clients should stay registered—for credibility, input claims, or because of their customer base.
Plan the cash flow impact
That final VAT bill on assets can hurt if you haven’t prepared your client.
What else is covered in the SARS Budget 2026 FAQs?
Beyond VAT, SARS has provided practical updates across key areas:
Personal tax: updated tax brackets, rebates, medical credits, and deductions
Payroll and compliance: EMP501 changes, filing deadlines, and PAYE obligations
Tax-free savings: annual limit increased to R46 000
Crypto: new reporting framework (CARF) now in effect—more visibility for SARS
Tax debt: SARS is intensifying collections, with more enforcement and third-party appointments
Corporate tax: rate remains at 27%, with targeted reforms for special economic zones
Capital gains tax: increased exclusions, especially for property and small businesses
Fuel and carbon taxes: levy increases coming from April 2026
The takeaway is simple: Budget 2026 isn’t just technical updates—it’s a shift in how SARS is tightening compliance while giving selective relief.
Start with VAT, but don’t stop there. This is the time to review your clients across the board and position yourself as the advisor who sees what’s coming before it becomes a problem.
