VAT Calculator - South Africa

What is VAT in South Africa?

VAT = Value Added Tax. It’s an indirect consumption tax applied to most goods and services sold in South Africa. The standard VAT rate is 15%.
There are also items that are zero-rated (0%) or exempt, like certain basic foodstuffs, exports, and specific financial or medical services.

How to Calculate VAT in South Africa

Here are the two common scenarios:

1. Adding VAT (15%)

• Formula: Gross = Net × (1 + 15%) = Net × 1.15

• Example: If an item costs R100 before VAT, with VAT it becomes R100 × 1.15 = R115

2. Removing VAT (15%)

• Formula: Net = Gross ÷ 1.15

• Example: If you paid R115 (including VAT), the price before VAT is R115 ÷ 1.15 = R100
  

  Official Rules & What You Should Know 

  • Vendors whose taxable supplies exceed R1 million per year must register for VAT.

  • Businesses making over R50,000 in taxable supplies annually may choose voluntary registration. 

  • VAT must be charged by registered vendors on taxable goods and services.

  • SARS handles the VAT regime (admin & compliance).
    Official Rules are Available here