On 25 February 2026, Finance Minister Enoch Godongwana delivered the 2026 Budget Speech, striking a careful balance between raising revenue and easing pressure on households and small businesses.
VAT Stays at 15%
After the turmoil of the 2025 Budget, government confirmed there would be no increase to the VAT rate, which remains at 15%. This provides welcome certainty for consumers and businesses alike after last year’s proposed hike was ultimately reversed.
VAT Registration Threshold Raised
In a notable relief for small enterprises, the Minister announced an increase to the compulsory VAT registration threshold — an idea drawn from public “Tips for the Budget” submissions. Fewer small businesses will now be forced into the VAT net, easing their administrative burden.
What You Should Do
- Review whether your business still falls within or below the new VAT threshold.
- Revisit your pricing and cash-flow assumptions in light of the stable VAT rate.
- Watch for the detailed tax tables and any adjustments to rebates and brackets.
If you need assistance understanding how these developments affect you or your business, GZ & Co. is here to assist.
