VAT Calculator South Africa - Add or Remove 15% VAT
Use this free calculator to add or remove VAT from any amount. South Africa's VAT rate is 15% (since 1 April 2018). Whether you need to calculate the VAT-inclusive price, find the VAT-exclusive amount, or work out the VAT portion of a total, this tool gives you instant results.
VAT Calculator - 15%
Enter amount excluding VAT to calculate the total including VATQuick Reference: VAT at 15%
Common amounts with VAT added and removed for quick reference.
| Amount (Excl.) | VAT (15%) | Total (Incl.) |
|---|---|---|
| R100 | R15,00 | R115,00 |
| R500 | R75,00 | R575,00 |
| R1 000 | R150,00 | R1 150,00 |
| R5 000 | R750,00 | R5 750,00 |
| R10 000 | R1 500,00 | R11 500,00 |
| R50 000 | R7 500,00 | R57 500,00 |
* To add VAT: multiply by 1.15. To remove VAT: divide by 1.15. To find the VAT portion of an inclusive amount: amount - (amount / 1.15).
What Is VAT in South Africa?
Value-Added Tax (VAT) is an indirect tax levied on the supply of goods and services in South Africa. It was introduced on 29 September 1991, replacing the old General Sales Tax (GST). VAT is governed by the Value-Added Tax Act, No. 89 of 1991. The current rate is 15%, which has been in effect since 1 April 2018 when it was increased from 14%.
VAT is charged at each stage of the production and distribution chain. Registered vendors collect VAT on behalf of SARS (the South African Revenue Service) and may deduct input VAT paid on business expenses. The net amount (output VAT less input VAT) is paid to SARS. This system ensures that VAT is ultimately borne by the final consumer, not by businesses in the supply chain.
South Africa's VAT rate of 15% is moderate by international standards. The global average is approximately 15-16%, with European countries typically charging 20-25% and other African nations ranging from 12-18%.
How to Calculate VAT
There are three common VAT calculations:
| Calculation | Formula | Example (R1,000) |
|---|---|---|
| Add VAT | Amount x 1.15 | R1,000 x 1.15 = R1,150.00 |
| Remove VAT | Amount / 1.15 | R1,150 / 1.15 = R1,000.00 |
| Find VAT portion | Amount - (Amount / 1.15) | R1,150 - R1,000 = R150.00 |
VAT-Exempt Items in South Africa
Certain supplies are exempt from VAT. This means no VAT is charged on these items, and the supplier cannot claim input VAT on related expenses. Exempt supplies include:
- Financial services - interest, life insurance premiums, retirement fund management fees
- Residential rental accommodation - rent paid for a dwelling used for residential purposes
- Educational services - services provided by schools, universities, and other registered educational institutions
- Public transport - transport of fare-paying passengers by road or rail
- Childcare services - creches and aftercare facilities
- Employee organisations - subscription fees to trade unions and professional bodies
Zero-Rated Items (0% VAT)
Zero-rated supplies are taxable at 0%. Unlike exempt supplies, vendors supplying zero-rated goods can still claim input VAT on their business expenses. The key zero-rated items include:
19 Basic Foodstuffs (Zero-Rated)
| Brown bread | Maize meal | Samp |
| Mealie rice | Dried mealies | Dried beans |
| Lentils | Pilchards/sardines (tinned) | Milk powder |
| Dairy powder blend | Rice | Vegetables |
| Fruit | Vegetable oil | Milk |
| Cultured milk | Brown wheaten meal | Eggs |
| Edible legumes and pulses | ||
Other Zero-Rated Supplies
- Petrol - subject to the fuel levy instead (diesel is standard-rated but has a diesel refund scheme)
- Illuminating paraffin
- Exports - goods and services supplied to customers outside South Africa
- International transport services
- Farming inputs - seeds, fertilisers, animal feed, pesticides, and farming equipment
- Municipal property rates
- Gold coins - Krugerrands and other gold coins
VAT Registration in South Africa
Businesses and individuals must register for VAT with SARS under the following circumstances:
Compulsory Registration
You must register for VAT if your total taxable supplies exceed R1 million in any consecutive 12-month period. Registration must be completed within 21 business days of exceeding this threshold. Failure to register is a criminal offence and can result in penalties and interest.
Voluntary Registration
You may voluntarily register for VAT if your taxable supplies exceed R50,000 in any consecutive 12-month period (or you can reasonably expect them to). Voluntary registration can be beneficial if you supply zero-rated goods (you can claim input VAT refunds) or if your customers are VAT-registered businesses (they can claim input VAT on your invoices).
Registration Process
- Apply via SARS eFiling (efiling.sars.gov.za) or at a SARS branch
- Provide required documents: ID, proof of address, proof of business activity, bank statements, and trading records
- SARS will verify your application and may conduct a site visit
- Once approved, you receive a VAT registration number and must begin charging VAT
- Submit VAT returns every 2 months (VAT201) and pay any VAT due
VAT on Invoices
VAT-registered vendors must issue tax invoices for all taxable supplies. A valid tax invoice must include:
- The words "Tax Invoice", "VAT Invoice", or "Invoice"
- The vendor's name, address, and VAT registration number
- The recipient's name and address (for invoices over R5,000)
- An individual serialised invoice number
- The date of issue
- A description of the goods or services supplied
- The quantity or volume of goods
- The value excluding VAT, the VAT amount, and the total including VAT (or a statement that the price includes VAT)
For supplies of R5,000 or less, a simplified (abridged) tax invoice may be issued, which requires fewer details. Vendors who fail to issue correct tax invoices may face penalties from SARS, and their customers will not be able to claim input VAT deductions.
History of VAT in South Africa
| Period | Rate | Notes |
|---|---|---|
| 29 Sep 1991 – 6 Apr 1993 | 10% | VAT introduced, replacing GST |
| 7 Apr 1993 – 31 Mar 2018 | 14% | Increased to 14% |
| 1 Apr 2018 – present | 15% | Increased to 15% (Budget Speech 2018) |
Frequently Asked Questions
What is the current VAT rate in South Africa?
The current VAT rate in South Africa is 15%. This rate has been in effect since 1 April 2018, when it was increased from 14% to 15%. VAT (Value-Added Tax) is an indirect tax charged on most goods and services sold in South Africa. It is collected by VAT-registered vendors on behalf of SARS.
How do I add VAT to a price?
To add 15% VAT to a price, multiply the amount by 1.15. For example, if an item costs R1,000 excluding VAT, the price including VAT is R1,000 x 1.15 = R1,150. The VAT portion is R150 (R1,000 x 0.15).
How do I remove VAT from a price?
To remove 15% VAT from a VAT-inclusive price, divide the amount by 1.15. For example, if an item costs R1,150 including VAT, the price excluding VAT is R1,150 / 1.15 = R1,000. The VAT portion is R150 (R1,150 - R1,000). Do not simply subtract 15% from the inclusive price - this gives an incorrect result.
What items are exempt from VAT in South Africa?
VAT-exempt supplies include financial services (interest, life insurance premiums, fees for managing retirement funds), residential rental accommodation, public transport by road or rail, educational services provided by registered institutions, and childcare services. Exempt supplies mean no VAT is charged and no input VAT can be claimed on related expenses.
What items are zero-rated for VAT in South Africa?
Zero-rated items (0% VAT) include 19 basic foodstuffs (brown bread, maize meal, samp, mealie rice, dried mealies, dried beans, lentils, pilchards/sardines in tins, milk powder, dairy powder blend, rice, vegetables, fruit, vegetable oil, milk, cultured milk, brown wheaten meal, eggs, and edible legumes and pulses), petrol, diesel, illuminating paraffin, goods exported from South Africa, international transport services, farming inputs, and municipal property rates. Vendors selling zero-rated items can still claim input VAT on their expenses.
When must I register for VAT in South Africa?
You must register for VAT if your taxable turnover exceeds R1 million in any consecutive 12-month period (compulsory registration). You may voluntarily register if your turnover exceeds R50,000 in a 12-month period. Registration is done through SARS eFiling or at a SARS branch. Once registered, you must charge VAT on all taxable supplies, submit VAT returns (usually every 2 months), and pay the VAT collected to SARS.
Is VAT charged on online purchases in South Africa?
Yes, VAT applies to online purchases of goods and services in South Africa. South African online retailers must charge 15% VAT like any other vendor. Since April 2019, foreign electronic services providers (such as Netflix, Spotify, and international software companies) must also register for and charge 15% VAT on digital services supplied to South African consumers.
Can I claim VAT back?
Only VAT-registered vendors can claim input VAT (VAT paid on business purchases) back from SARS. To claim, you need a valid tax invoice showing the vendor's VAT number, your details, a description of the goods/services, and the VAT amount. Claims are made through your VAT return (VAT201). Individual consumers cannot claim VAT back on personal purchases. Foreign tourists can claim VAT refunds on goods purchased in South Africa and taken out of the country, through the VAT Refund Administrator at ports of exit.
Disclaimer: This calculator uses the current South African VAT rate of 15%. VAT legislation is subject to change. The list of exempt and zero-rated items is summarised and may not be exhaustive. For VAT registration, compliance, and complex supply questions, consult a registered tax practitioner or contact SARS directly. This tool is for informational purposes only and does not constitute tax advice.
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