VAT changes for South Africa

[Kirsten Minnaar]

VAT changes for South Africa

While the 2026 Budget may not have changed the VAT rate, it still made several adjustments to the system.

 

[killerbyte]

The raising of the R1m limit to R2.3m will give small business a real boost and its a step in the right direction that will help small businesses grow.

 

[Next Thing]

The raising of the R1m limit to R2.3m will give small business a real boost and its a step in the right direction that will help small businesses grow.

Good and bad

 

[killerbyte]

Good and bad

I am curious how it is bad?

 

[Creag]

Good and bad

You need to qualify this - or delete.

 

[Next Thing]

I am curious how it is bad?

Good side is less red tape for small to middling companies

Bad side is because they would be buying from companies that are vat registered then VAT would be included in the input costs, but they would not be able to offset it as they cannot include vat onwards as well as not being able to offset vat from other business input costs which may not be resold.
A lot of big companies also do not like dealing with other companies that are not vat registered

So Good and bad depending on what business the company is in and how it is registered.
At least a company can choose whether or not they want to register for vat if income is over the minimum
All just a numbers game

 

[Next Thing]

2 minute google which actually is spot on