vat
VAT Registration Threshold 2026 – Do You Need to Register?
Compulsory VAT registration is generally linked to R1 million of taxable supplies in 12 months. Here is how add/remove VAT works at 15%.
20 September 2026
VAT is charged at a standard rate of 15% on most taxable supplies. Compulsory registration generally applies when taxable supplies exceed R1 million in any consecutive 12-month period. Voluntary registration may be possible earlier if you meet SARS criteria — with extra compliance duties.
Add VAT
Exclusive × 15% = VAT. Exclusive + VAT = inclusive. Example: R1,000 → R150 VAT → R1,150 total.
Remove VAT
Inclusive ÷ 1.15 = exclusive. Inclusive − exclusive = VAT. Example: R1,150 → R1,000 exclusive → R150 VAT.
Use the VAT Calculator to switch modes instantly.
Input tax on cars
Passenger vehicles are tightly restricted for input tax claims. Do not assume you can claim VAT on a normal staff car.
Next steps
Price with the VAT hub. If you draw a salary from your business, model PAYE on the tax calculator. Property deals may use VAT or transfer duty.
FAQs
Threshold?
Generally R1 million taxable supplies in 12 months.
Rate?
Standard 15%.
Claim VAT on a car?
Usually not for ordinary passenger vehicles.