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.
1. 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
2. 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
3. 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
4. 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
5. Tools, Templates & Case Studies
• Asset valuation schedule (Excel)
• VAT deregistration calculator
This course is ideal for:
Tax Practitioners & Consultants, Accountants & Bookkeepers, Financial Managers & CFOs, Business Owners & Entrepreneurs, Auditors
• Advising clients on VAT registration decisions
• Preparing VAT deregistration applications
• Managing Section 8(2) calculations and valuations
• Assessing cashflow implications
• Overseeing asset and creditor valuations
• Reviewing VAT exit calculations
• Ensuring compliance with SARS requirements
