Finance · South Africa
South Africa Raises VAT Threshold to Support Small Businesses
Moneyweb · 2026/02/25
Summary
The South African government has updated the VAT threshold for the first time since 2009. This means that the amount businesses must earn before they need to register for VAT has changed. The goal of this update is to help encourage more entrepreneurs to start and grow their businesses by reducing the immediate tax burden. It also aims to promote a savings culture among South Africans by making it easier for small businesses and entrepreneurs to manage their finances. This change could help small business owners focus more on growing their operations without worrying about complex tax rules right away. Additionally, it may encourage more people to formalize their business activities, contributing to economic growth and job creation in the country.
OnABudget takeaway: The new VAT threshold update means small business owners can save money and avoid extra paperwork until they reach a higher turnover. For consumers, this encourages more local products and services as small businesses grow.