Effective from 1 April 2026

The increase in the VAT compulsory and voluntary registration thresholds (effective 1 April 2026) has created a new strategic landscape for South African businesses.

While deregistering for VAT may seem like a simple administrative decision—especially with the new threshold increases—many businesses only discover the true financial and operational impact after the process has already begun. It is a taxable event with potentially significant cashflow, compliance, and commercial consequences.

We will cover the most important hidden risks business owners often overlook.

Content:

• Understanding VAT Deregistration
  • What deregistration means under the VAT Act
  • Compulsory vs voluntary deregistration
  • Changes to thresholds (R2.3m compulsory & R120 000 voluntary from 1 April 2026)
  • SARS criteria for approving deregistration
• Section 8(2) Exit VAT — The Deemed Supply Rules
  • What triggers a deemed supply
  • Which assets and rights fall into the exit VAT base
  • When OMV is required and what SARS expects as proof
• Valuation, Timing, and Strategic Considerations
  • When to recommend deregistration — and when not to
  • Selecting the most favourable deregistration date
  • Effect of asset levels on exit VAT
  • Industry-specific considerations (construction, professional services, exporters)
  • Voluntary deregistration
• SARS Procedures & Administrative Risks
  • How to complete VAT123e (full deregistration) and VAT123T (branch deregistration) forms
  • Submitting via SARS eBooking, email, or branch appointment
  • SARS processing delays
• Tools, Templates & Case Studies
  • Asset valuation schedule (Excel)
  • VAT deregistration calculator