Schools VAT Deregistration and VAT Output Liability Considerations (2026)

Price:
R598.00 (VAT Incl.)
Level:
Tax Professionals
Sub-level:
Taxation
Lecturer:
Tristan David-Crewe White
Duration:
120 Minutes
Additionals:
   CPD Assessment
   Certificate

Lesson Outline


From 1 January 2026, National Treasury, through the Taxation Laws Amendment Bill, amended section 12 of the VAT Act, dealing with exempt supplies made by public and private schools. As a result SARS require all schools that are registered for VAT to immediately be deregistered and consider themselves, in terms of section 8 of the VAT Act, to have entered into a deemed disposal of all goods that form part of the VATable enterprise.

Content

The implication is the following:

  • Immediate deregistration as a VAT vendor
  • A VAT output liability will be incurred and be settled
  • No more input VAT may be claimed on expenses going forward
  • Identify and unpack the amended sections of the VAT Act affecting schools
  • Explore what types of supplies are to be included in the deemed VAT-output liability calculation and how the calculation is to be performed
  • Confirm when the exit-VAT output liability is to be paid and relief granted by SARS
  • Discuss SARS’ FAQ and the practical / financial hardships to be faced by schools