Guidance on Deregistering Tax Types via SARS eFiling
Deregistering tax types is necessary for businesses or individuals who no longer require certain tax registrations due to inactivity, closure, or other reasons.
SARS has simplified the process through digital channels, including the eFiling platform. Here's a quick guide to assist accountants in navigating the deregistration process:
1. Deregistration can be requested by:
Individual taxpayers
Executors of deceased estates
Public officers for companies
Main members of close corporations (CCs)
Trustees for trusts
Representatives of government entities.
2. Common Scenarios for Deregistration
The entity is dormant or no longer operational.
There is a duplicate tax reference number.
The taxpayer has emigrated and no longer has South African income or assets.
Estates are dissolved due to death, insolvency, or liquidation.
3. Tax Types Eligible for Deregistration
Value-Added Tax (VAT) - refer to the SARS website on how to cancel a VAT registration.
Pay-As-You-Earn (PAYE)
Skills Development Levy (SDL)
Unemployment Insurance Fund (UIF)
Income Tax
4. Steps to Deregister on eFiling
Log in to the SARS eFiling platform.
Navigate to the Registration Maintenance section.
Select the tax type to deregister and provide the required details, including the effective date.
Submit the request with supporting documents, such as:
VAT123e form for VAT deregistration (VAT123T for a separately registered branch).
EMP123 form for PAYE/SDL/UIF deregistration.
Proof of deregistration for companies/trusts from the Companies and Intellectual Property Commission (CIPC) or Master of the High Court.
5. Common Mistakes to Avoid
Do not submit incomplete or unsigned forms.
Missing mandatory dates (e.g., cessation of trading).
Not attaching required documents, such as IDs or power of attorney for representatives.
6. Where to Find Assistance
Email channels:
For tax practitioners: pcc@sars.gov.za
For individual taxpayers: contactus@sars.gov.za
Use the SARS Online Query System (SOQS) for queries and document submissions.
7. Additional Resources
For explanations on the de-registrations procedures, refer to the presentation SARS Deregistration of Tax Types 2023.
Watch the SARS video and download the slides from the tax practitioner readiness programme Module 8 – part 6: Deregistration of a Tax Type:
By following these steps and avoiding common errors, you can streamline the deregistration process for your clients efficiently.
Updated for 2026/27
Updated 1 October 2026.
The new R2.3 million VAT threshold
From 1 April 2026 the compulsory VAT registration threshold rose from R1 million to R2.3 million in taxable supplies over 12 months. The voluntary threshold rose from R50,000 to R120,000. A vendor whose taxable supplies fall below R2.3 million in any consecutive 12 months may now apply to cancel its registration. SARS will not cancel registrations automatically.
Before you deregister a client, work out the exit VAT. Output tax is due on certain assets still on hand on the date the business stops being an enterprise, and it goes in field 1A of the final VAT return. Keep charging VAT until SARS confirms the cancellation. For help deciding whether a client should deregister at all, read R2.3 Million VAT Threshold: Should Your Client Deregister or Stay Registered?
Frequently asked questions
How do I cancel a VAT registration with SARS in 2026?
Complete the VAT123e form (VAT123T for a branch), state the reason and the date trading stopped, and submit it through eFiling Registration Maintenance, a SARS eBooking virtual appointment, or the SARS branch where the vendor is registered. If the business was sold, attach the sale agreement.
Can my client deregister if turnover is below R2.3 million?
Yes. From 1 April 2026 a vendor may apply to cancel if taxable supplies fall below R2.3 million in any consecutive 12 months. Weigh the input VAT the client gives up against the admin saved, and include the exit VAT on assets on hand.
How do I deregister for PAYE, SDL and UIF?
Use the deregistration function under Registration Maintenance on eFiling, indicate it on the final EMP501 reconciliation, or send an EMP123 (EMP123T for a branch). Apply within 14 business days after the employer activities stop. UIF is cancelled automatically once PAYE is cancelled.
Will SARS deregister a taxpayer with outstanding returns or debt?
No. SARS will not finalise the cancellation until all returns are filed and all liabilities are settled.
