Turnover dropped, or you’re closing the business — here’s the actual deregistration process and what you owe on the way out.
Last updated: June 2026
You can apply to deregister for VAT if your taxable turnover is genuinely expected to stay below the relevant threshold going forward, if you’re ceasing to trade entirely, or if you were only ever registered for a specific reason that no longer applies.
Deregistration is normally requested via eFiling or at a SARS branch, specifying your reason and effective date. You must file one final VAT return covering the period up to deregistration, and if you still hold business assets on which input VAT was claimed, you may need to account for output VAT on their value as a deemed supply at deregistration.
Yes — deregistering isn’t permanent. If your turnover picks back up and crosses the threshold again, or you want to re-register voluntarily (from R50,000), you go through the normal registration process again.
No, deregistration is optional in this scenario — you can remain registered if it still benefits you, such as claiming input VAT or dealing mainly with VAT-registered customers.
If you claimed input VAT on business assets you still hold, you may need to account for output VAT on their value at deregistration, similar to a deemed sale.
Processing times vary, so plan ahead and confirm your effective deregistration date with SARS before assuming it’s finalised.
If your final return shows you’ve overpaid, SARS will refund the difference in the normal way, the same as any other VAT return.
Generally you’ll go through fresh registration, so it’s worth confirming with SARS at the time whether your previous number applies or a new one is issued.
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