The South African Revenue Service (SARS) has urged schools to review their tax status and deregister as VAT vendors where applicable, following legislative changes that exempt all school supplies from VAT.
The changes, which came into effect on 1 January 2026, mean schools registered under the South African Schools Act can no longer charge VAT or claim input tax on qualifying supplies unless they have approval to remain registered for specific welfare activities.
SARS said affected schools should submit a VAT123e – Application for Cancellation of Registration form by emailing contactus@sars.gov.za with the subject line “VAT deregistration – Schools.”
Schools must state that “All enterprise activities have ceased on 31 December 2025” as the reason for cancelling their VAT registration.
The revenue service warned that schools which have continued submitting VAT returns or charging VAT after the legislative changes took effect may need to amend those returns to ensure compliance.
Alternatively, schools can request a virtual appointment through the SARS eBooking system to complete the deregistration process.
Where exit VAT is payable, SARS said payment arrangements can be requested, with deregistration taking effect once the outstanding obligations have been settled or an agreed payment plan has been honoured.
Schools that intend remaining VAT vendors for qualifying welfare activities must first obtain written approval from the SARS Commissioner.
SARS has encouraged schools to consult its guidance documents, including the VAT Reference Guide – Schools Exiting the VAT System and its frequently asked questions, to ensure a smooth transition under the new tax framework.
