VAT Calculator
Add or remove South Africa's 15% VAT from any amount instantly. Works for both VAT-exclusive and VAT-inclusive prices.
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Enter an amount to see the VAT breakdown.
Data: Effective 1 April 2018 · Value-Added Tax Act 89 of 1991 · SARS VAT 411 Guide · See methodology
How does VAT work in South Africa?
VAT (Value-Added Tax) is a consumption tax charged at each stage of the supply chain. In South Africa, VAT-registered vendors collect it on behalf of SARS and pay it over monthly or bi-monthly. As a consumer, you pay VAT on most goods and services you buy — it's already built into the price you see on the shelf.
The standard VAT rate is 15%, which has applied since 1 April 2018. To add VAT to an amount, multiply by 1.15. To remove VAT from a VAT-inclusive price, divide by 1.15. For example: R115 ÷ 1.15 = R100 exclusive, with R15 VAT.
Not everything carries VAT. Basic foodstuffs — brown bread, milk, eggs, dried beans, fresh produce, rice — are zero-rated. Public road and rail transport, paraffin, and international transport are also zero-rated. Some financial services and educational services are VAT-exempt entirely.
VAT formulas — add or remove VAT
Adding VAT
VAT-inclusive = Price × 1.15
Example: R200 × 1.15 = R230 (R30 VAT)
Removing VAT
VAT-exclusive = Price ÷ 1.15
Example: R230 ÷ 1.15 = R200 (R30 VAT)
The common mistake is to calculate VAT as 15% of the VAT-inclusive price. It is not. VAT is 15/115 (≈13.04%) of the inclusive price, or 15% of the exclusive price. Always divide by 1.15 to extract VAT from an inclusive amount.
Zero-rated goods and services in South Africa
Zero-rated supplies are taxable at 0% — vendors can still claim input VAT on costs related to producing them, unlike VAT-exempt supplies. These are the main zero-rated items under the VAT Act:
| Category | Examples |
|---|---|
| Basic foodstuffs | Brown bread, milk, eggs, dried beans, samp, maize, rice, fresh fruit & vegetables, edible oils |
| Transport | Public road and rail transport of passengers (taxis, buses, trains) |
| Fuel | Illuminating paraffin sold in containers ≤10 litres |
| International | Exports of goods and international passenger transport |
| Farming inputs | Certain agricultural inputs including seeds and fertiliser |
VAT registration threshold
Businesses whose taxable turnover exceeds R1,000,000 in any 12-month period must register for VAT with SARS. Voluntary registration is allowed once turnover exceeds R50,000.
Once registered, you must charge VAT on all taxable supplies and submit VAT returns (VAT201) monthly or bi-monthly — depending on your turnover category. You may also claim back the VAT you paid on business expenses (input VAT) against the VAT you collected (output VAT). The difference is paid to SARS or refunded to you.
Failing to register when required is a criminal offence under the VAT Act. SARS conducts regular audits and can impose a 10% penalty on unpaid VAT plus interest.
When to add vs remove VAT — practical guide
You are a business quoting a price to a customer
Quote exclusive of VAT, then add 15%. Customers expect to see VAT listed separately on a proper tax invoice.
You bought something and want to know the VAT portion
Divide the VAT-inclusive price by 1.15 to get the exclusive price. The difference is the VAT. Use this when reclaiming input VAT.
You see a shelf price and want to know if VAT is included
In South Africa, retail prices displayed to consumers must include VAT. Prices quoted to businesses (B2B) are typically exclusive — always check the invoice.
You are filing a VAT return
Output VAT = total VAT charged to customers. Input VAT = total VAT paid on business purchases. Pay SARS the difference (or claim a refund if input exceeds output).
Frequently asked questions
What is the VAT rate in South Africa?
The standard VAT rate in South Africa is 15%, which has been in effect since 1 April 2018. VAT is charged by VAT-registered vendors on most goods and services.
How do I calculate VAT on an amount?
To add VAT: multiply the exclusive amount by 1.15. To remove VAT from an inclusive amount: divide the inclusive amount by 1.15. The VAT amount alone is the exclusive amount × 0.15.
Which goods are exempt from VAT in South Africa?
Zero-rated items include basic foods (brown bread, milk, eggs, fresh produce, rice, dried beans), paraffin, public road and rail transport, and international transport. Some financial and educational services are VAT-exempt.
What is the difference between zero-rated and VAT-exempt in South Africa?
Both result in no VAT being charged to the customer, but they work differently for the vendor. Zero-rated supplies (like basic food, paraffin, exports) are taxable at 0% — vendors can still claim back the input VAT they paid on costs to produce those supplies. VAT-exempt supplies (like certain financial services, residential rent, educational services) sit outside the VAT system entirely — vendors cannot claim input VAT on costs related to exempt supplies. The distinction matters most for businesses that sell a mix of taxable and exempt goods, because only the taxable portion of their input VAT is claimable.
Do I need to register for VAT in South Africa?
You must register for VAT if your taxable turnover exceeds R1,000,000 in any consecutive 12-month period — this is the compulsory registration threshold. Voluntary registration is allowed once turnover exceeds R50,000. Once registered, you must charge 15% VAT on all taxable supplies, file VAT201 returns monthly or bi-monthly depending on your turnover category, and pay the difference between output VAT (collected from customers) and input VAT (paid on business expenses) to SARS. Failing to register when required is a criminal offence under the VAT Act and carries a 10% penalty on unpaid VAT plus interest.
Can I claim back VAT I have paid as a business?
Yes — this is input VAT. If you are VAT-registered, you can deduct the VAT you paid on business expenses (input VAT) from the VAT you collected from customers (output VAT). If your input VAT exceeds your output VAT in a period, SARS owes you a refund. To claim input VAT you need a valid tax invoice from the supplier showing their VAT registration number, the VAT amount, and the invoice date. You cannot claim input VAT on entertainment expenses, motor cars purchased for private use, or expenses related to VAT-exempt supplies.
Is VAT included in the price I see in shops in South Africa?
Yes — retail prices displayed to consumers in South Africa must include VAT by law. The price on the shelf or on a restaurant menu is the VAT-inclusive price. When you see R115 on a price tag, R15 of that is VAT and R100 is the VAT-exclusive price. Business-to-business (B2B) pricing is usually quoted VAT-exclusive, with VAT listed separately on a tax invoice — always check whether a quoted price includes or excludes VAT when dealing with a supplier.
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