Economic Empowerment
VAT threshold increased: A boost for small businesses
Nyatee Foundation welcomes the increase in the compulsory VAT registration threshold from R1 million to R2.3 million as a practical step toward easing pressure on SMEs.
In the 2026 Budget Speech, Finance Minister Enoch Godongwana announced an increase in the compulsory VAT registration threshold from R1 million to R2.3 million.
This policy shift is a meaningful step toward reducing administrative burdens and improving cash flow flexibility for small and medium enterprises.
At Nyatee Foundation, we welcome reforms that create breathing room for entrepreneurs. However, sustainable SME growth requires a holistic support framework, including improved access to funding, market integration, skills development, and policy certainty.
Reducing compliance pressure is progress.
Building resilient and scalable enterprises is the long-term objective.
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