VAT Calculator

How the VAT Calculator Works

Value Added Tax (VAT) in South Africa is levied at a standard rate of 15% on the supply of goods and services by registered vendors. It was increased from 14% to 15% on 1 April 2018 and has remained at 15% since. VAT is an indirect tax - the vendor collects it from the customer and remits it to SARS.

Adding VAT (VAT-exclusive → VAT-inclusive): multiply the excluding amount by 1.15. A product priced at R100 excluding VAT costs R115 including VAT, with R15 being the VAT portion.

Removing VAT (VAT-inclusive → VAT-exclusive): divide the including amount by 1.15. A price tag of R115 contains R15 of VAT and R100 of the underlying price. The extract formula is: VAT = inclusive price × (15 ÷ 115). Do not simply multiply by 15% - that gives the wrong answer on an already-inclusive price.

Certain supplies are zero-rated (taxed at 0%) or exempt. Zero-rated items include basic food items (brown bread, milk, eggs, vegetables, fruit, legumes, rice, edible oils), exported goods, and international transport. Exempt supplies (not subject to VAT at all) include residential rentals, financial services, and educational services. This calculator handles standard-rated supplies only.

How to Use This Calculator

1. 1

   Enter the amount

   Type the price or amount you want to work with. You can enter any value - there is no minimum or maximum.

2. 2

   Choose Add VAT or Remove VAT

   Select 'Add VAT' if you have a price excluding VAT and need the customer-facing inclusive price. Select 'Remove VAT' if you have a price tag or invoice total that already includes VAT and need to extract the VAT portion - for example, when claiming a VAT input credit or checking a supplier invoice.

3. 3

   Read the three values

   The calculator always shows you the VAT-exclusive amount, the VAT portion, and the VAT-inclusive total. Use the VAT portion figure directly on your VAT201 return or when querying a supplier invoice.

4. 4

   Check your rounding

   SARS requires VAT to be rounded to the nearest cent. The calculator rounds to two decimal places in line with standard practice. When calculating VAT on multiple line items, round each line item separately rather than the total to match how most accounting systems operate.

Frequently Asked Questions

What is the current VAT rate in South Africa?

The standard VAT rate in South Africa is 15%, effective from 1 April 2018. It was previously 14% from 1993. A further increase to 15.5% was announced in the 2025 Budget but subsequently reversed. The 15% rate currently applies to all standard-rated supplies of goods and services by VAT vendors.

Which food items are zero-rated for VAT in South Africa?

SARS zero-rates a specific list of basic foodstuffs including brown bread, white bread, dried mealies, dried beans, lentils, pilchards/sardines in tins, rice, fresh fruit and vegetables, vegetable oil, milk, eggs, and milk powder. Processed foods (ready-meals, snacks, fizzy drinks) are standard-rated at 15%. The distinction matters for retailers who must account for the two rates separately.

When must a South African business register for VAT?

A business must register for VAT once its taxable turnover exceeds R1 million in any 12-month period (compulsory registration). Voluntary registration is available once turnover exceeds R50 000. Registered vendors must charge VAT on standard-rated supplies, submit VAT201 returns (usually bi-monthly or monthly), and may claim input VAT on business purchases.

What is input VAT and how does it work?

Input VAT is the VAT a registered vendor pays on business purchases. It can be offset against the output VAT collected from customers. If you buy stock for R1 150 (including R150 VAT) and sell it for R2 300 (including R300 VAT), you remit only R150 to SARS (R300 output minus R150 input). If input VAT exceeds output VAT - common for exporters - SARS refunds the difference.

Is VAT charged on property sales in South Africa?

Residential property sold by a private individual is generally exempt from VAT and instead subject to Transfer Duty. However, if the seller is a VAT vendor (e.g., a property developer) selling a new residential property or any commercial property, VAT at 15% applies instead of Transfer Duty - not both. This is an important distinction: if you buy from a developer, confirm whether the price is VAT-inclusive or exclusive.

How do I calculate VAT on a mixed invoice?

Add up each standard-rated line item, calculate 15% VAT on that sub-total, then add any zero-rated or exempt items separately with no VAT. SARS requires VAT invoices to clearly show the VAT amount and rate applicable to each supply. Most accounting software (Xero, QuickBooks, Sage) handles this automatically, but the formula is always: standard-rated items × 0.15 = VAT due.