Budget Speech 2026: Key Changes for Businesses

The 2026 Budget Speech also introduces important changes that will affect businesses, particularly SMEs.

VAT Registration Threshold Increase
Effective 1 April 2026, the compulsory VAT registration threshold increases from R1 million to R2.3 million. This change reduces the compliance burden for smaller businesses and may improve cash flow.

Excise Duties Increase
Excise duties on alcohol and tobacco will increase by 3.4%, which may impact pricing and consumer demand in affected industries.

Provisional Tax Penalty Changes
There are updates to penalties related to the underestimation of provisional tax. Businesses must ensure more accurate income forecasts to avoid penalties and remain compliant.

These changes highlight the importance of proper tax planning and compliance. Businesses should reassess their VAT obligations and provisional tax calculations to stay aligned with the latest regulations.