Let’s be honest — getting a message from SARS saying you’ve been selected for a VAT verification or audit can make your stomach drop. Even if you know everything has been done correctly, it’s still stressful. Most VAT audits and reviews are manageable, especially when your records are kept properly and your VAT is prepared using accounting software like Xero. SARS uses two different processes, and they are not the same thing.

Written by Pumeza Chochoe

The EMP501 Employer Annual Reconciliation filing season is now open, and SARS has confirmed that employers have from 1 April to 31 May 2026 to submit their annual reconciliation.

This is the period during which employers must prepare and submit their EMP501 reconciliation, together with employees’ IRP5 / IT3(a) tax certificates. The reconciliation covers the full tax year from 1 March 2025 to 28 February 2026.

As we approach the new financial year, we want to remind you of an important update regarding the national minimum wage in South Africa.

With effect from 1 March 2026, the minimum wage rates have increased as follows:

• National Minimum Wage: R30.23 per hour

• Farm workers: R30.23 per hour

• Domestic workers: R30.23 per hour

• Expanded Public Works Programme (EPWP): R16.62 per hour

If you receive dividends from a South African company (or you run a (Pty) Ltd that pays dividends), it’s important to understand what “dividends tax” is, who must deal with it, and what paperwork we need from you each year.

The Budget Speech always comes with a few tweaks that can affect your personal tax, payroll, and planning. Here are the key changes we want you to be aware of — nice and simple.

One of the most talked‑about proposals in the 2026/27 Budget is the plan to raise the compulsory VAT registration threshold from R1 million to R2.3 million in a 12‑month period. This is a big shift, especially for small businesses that have been hovering just above or below the current R1 million mark.

Over the past few years, SARS has been tightening its compliance systems, and now a major shift is here. From February 2026, SARS will reject any PAYE (EMP501) reconciliation that includes an employee who is required to be tax‑registered but does not have a valid Income Tax Reference Number (ITRN). The long‑standing warning “grace period” officially ends with the 2026 Employer Filing Season, and any non‑compliance may lead to administrative penalties.