VAT Refunds: Avoiding the “Verification Trap” in the Modernised Era
A VAT refund can be a welcome cash-flow boost. But for businesses that regularly receive VAT refunds, there is an important distinction between claiming a refund and receiving the refund. SARS may verify, inspect or audit a refund claim before releasing the money. How VAT refunds work A VAT refund generally arises when allowable input […]
VAT in 2026: Understanding the New R2.3 Million Registration Threshold
Small businesses received an important VAT change in 2026. From 1 April 2026, the compulsory VAT registration threshold increased from R1 million to R2.3 million in taxable supplies over a 12-month period. The voluntary registration threshold also increased from R50,000 to R120,000. For many smaller businesses, this represents a significant change. What does the R2.3 […]
Beyond the Audit: How Real-Time Data Reporting Will Change Your VAT Compliance
For many businesses, VAT compliance has historically meant one thing: Get the VAT return right before the deadline. SARS’s proposed Digital VAT Model could fundamentally change that mindset. The future of VAT compliance is intended to be less about looking backwards at what happened during the previous tax period and more about ensuring that transactions […]
The 5-Corner Model Explained: How Data Will Flow Between You and SARS
The phrase “Five-Corner Model” may sound complicated. The underlying concept is actually fairly straightforward. SARS’s proposed Digital VAT Model creates a network through which invoice information can move between a supplier, its service provider, the buyer’s service provider, the buyer and SARS. Think of it as a chain. Corner 1: The supplier Corner One (C1) […]
VAT Modernisation: What the “Digital VAT Model” Means for Your Business
South Africa’s VAT system is entering a new era. In August 2026, SARS published its Consultation Paper on VAT Modernisation: E-Invoicing, Interoperability Framework and E-Reporting, setting out a proposed framework that could fundamentally change the way businesses manage VAT. The vision is ambitious: instead of VAT compliance being something businesses largely deal with at the […]
