APT Practitioners - APT Group

The VAT threshold has changed but VAT still needs strategy.

From 1 April 2026, SARS confirms that the compulsory VAT registration threshold increased from R1 million to R2.3 million.

That may sound like good news for many small businesses, but it does not mean VAT can simply be ignored.

Before making a VAT decision, business owners should ask:

• Is my turnover close to the new threshold?
• Do I sell mainly to VAT-registered clients?
• Am I losing input VAT claims by not registering?
• Will VAT affect my pricing?
• Could deregistration affect my business relationships?
• Am I planning to grow beyond the threshold soon?
• Do I understand the cash flow impact of VAT?

VAT is not only about whether you “have to” register.

It is also about whether registration makes sense for your business model, clients, cash flow and future growth.

Before registering, deregistering or ignoring VAT, speak to APT Practitioners.

That interest-free loan to a trust may not be as harmless as it looks.

Many families and business owners use trusts as part of estate planning, asset protection or long-term wealth structuring. But when a connected person lends money to a trust at no interest, or at an interest rate below the official rate, section 7C of the Income Tax Act may need to be considered.

In simple terms, section 7C can affect certain low-interest or interest-free loans made to trusts by connected persons.

This matters because trust loan accounts are often left untouched for years until tax season, estate planning, a SARS query or a restructuring exercise brings them back into focus.

Trusts can still be valuable planning tools, but they must be managed properly.

If your trust has a loan account, speak to APT Practitioners about a section 7C review.