What is the VAT rate in South Africa?

South Africa's standard VAT rate is 15%. It was raised from 14% to 15% on 1 April 2018 and has remained at 15% since. The rate is set under the Value-Added Tax Act 89 of 1991, administered by SARS (South African Revenue Service).

How do I add 15% VAT to a net price?

Multiply the net price by 1.15. For example, a R 1 000 net price becomes R 1 150 gross (R 1 000 x 1.15). The R 150 difference is the VAT component. This calculator does that arithmetic for you and shows all three figures at once.

How do I remove VAT from a gross (VAT-inclusive) price?

Divide the gross price by 1.15. For example, R 1 150 gross divided by 1.15 gives R 1 000 net, with R 150 of VAT embedded. Never simply multiply by 15% on the gross — that gives an incorrect (higher) VAT figure. The "Remove VAT" mode in this calculator uses the correct formula automatically.

Which goods and services are zero-rated for VAT in South Africa?

Zero-rated supplies (taxed at 0% rather than exempt) include brown bread, maize meal, dried beans, lentils, pilchards and other canned fish, edible vegetable oils, milk, eggs, fresh fruit and vegetables, exported goods, international transport services, and certain agricultural inputs. Zero-rating means the supplier charges no VAT but can still claim back input VAT — unlike exempt supplies.

What is the difference between zero-rated and VAT-exempt in South Africa?

Zero-rated supplies carry a 0% VAT rate, so no tax is charged to the customer and the supplier can still recover input VAT paid on costs. Exempt supplies fall outside the VAT system entirely — no VAT is charged to the customer, but the supplier also cannot claim input VAT deductions. Common exempt supplies include residential property rental, financial services such as loans and insurance, educational services from registered institutions, and road and rail passenger transport.

When must a South African business register for VAT?

A business must register for VAT with SARS once its taxable turnover exceeds or is expected to exceed R 1 million in any consecutive 12-month period. Voluntary registration is available from R 50 000 in taxable turnover. Once registered, the business must charge VAT on standard-rated and zero-rated supplies, issue tax invoices, and submit periodic VAT returns (usually every two months).

South Africa VAT Calculator

South Africa levies Value-Added Tax (VAT) at a standard rate of 15% on most goods and services. Introduced under the Value-Added Tax Act 89 of 1991 and administered by SARS (the South African Revenue Service), VAT is a broad-based consumption tax collected at each stage of the supply chain. The rate was raised from 14% to 15% on 1 April 2018 and has remained unchanged since.

This calculator handles both directions in seconds: add VAT to a net (excl. VAT) price to get the consumer-facing gross total, or remove VAT from a VAT-inclusive price to recover the underlying net amount and the exact rand amount of tax embedded in it. Switch between the 15% standard rate and the 0% zero rate with a single click, and use the Copy buttons to paste individual figures straight into an invoice or spreadsheet.

How it works

Adding VAT (net to gross): The gross price is the net price multiplied by (1 + rate). At 15%: gross = net x 1.15. The VAT component is the difference: gross - net.

Removing VAT (gross to net): The net price is the gross price divided by (1 + rate). At 15%: net = gross / 1.15. Dividing by 1.15 is the only correct approach — multiplying the gross by 15% overstates the VAT. The embedded VAT is gross - net.

Both calculations are performed instantly in your browser. No data is transmitted to any server, and the page works fully offline once loaded.

South Africa VAT rates at a glance

Rate	Category	Typical examples
15%	Standard rate	Electronics, clothing, restaurant meals, professional services, fuel, alcohol, tobacco
0%	Zero-rated supplies	Brown bread, maize meal, eggs, milk, fresh produce, exported goods, international transport
N/A	Exempt supplies	Residential rental, financial services, educational services, public passenger transport

Exempt supplies are outside the VAT system entirely: no VAT is charged and no input VAT may be claimed. Zero-rated supplies are taxed at 0%: the supplier charges nothing but retains the right to reclaim input VAT — a meaningful distinction for VAT-registered vendors.

Worked example

A freelance graphic designer in Cape Town invoices a client R 8 500 net for a branding project. The work is a standard-rated supply (professional services), so VAT at 15% applies.

VAT to charge: R 8 500 x 0.15 = R 1 275
Gross invoice total: R 8 500 + R 1 275 = R 9 775

The client later receives a supplier invoice for R 2 300 including VAT for printing materials. To reclaim that input VAT, the accountant needs the net figure:

Net (excl. VAT): R 2 300 / 1.15 = R 2 000
VAT embedded: R 2 300 - R 2 000 = R 300

Both calculations above can be verified in under five seconds using this tool.

VAT registration thresholds

A South African business must register for VAT once taxable turnover exceeds R 1 million in any consecutive 12-month period. Voluntary registration is open to businesses with taxable turnover of at least R 50 000. Once registered, the vendor must issue valid tax invoices, charge VAT on taxable supplies, and submit VAT returns (typically bi-monthly) to SARS. Failure to register on time can result in penalties and retrospective VAT liability.

Rates current as of 2025 per SARS. This tool is for guidance only and does not constitute tax advice. Consult a registered tax practitioner or SARS directly for complex VAT queries.