VAT Calculator for South Africa

VAT calculator for South Africans, along with a formula and guide to calculate inclusive or exclusive VAT themselves.

If you want to Add VAT or Remove VAT, we have dedicated separate pages available for your convenience. You can easily access these pages to manage your VAT adjustments as needed.

How to Use the VAT Calculator?

Calculating VAT for both VAT-inclusive and VAT-exclusive prices in South Africa is quick and simple. Just follow these three easy steps:

1. Enter the amount – Input the value in the AMOUNT section.
2. Confirm the VAT rate – The standard VAT rate is 15%, which is already set.
3. Choose an action – Click Add VAT to calculate the total price including VAT or click Remove VAT to determine the amount before VAT was

How to Calculate VAT Using VAT Calculator?

Calculating VAT depending on your country’s standard rate is pretty straightforward. Here is what you need to consider when calculating VAT on any product or service.

• As we know the standard VAT rate is 15% or 0.15, you have to multiply the ex-VAT price of the product by (100 + 15) / 100, which gives us 1.15. For instance, if a TV costs around R100, we multiply this number by 1.15, which would be R86.9565.
• Please note that there are no reduced VAT rates under the South African VAT regime. Hence, you do not have to add the reduced charges to the total price.
• Moreover, no sums are needed for the products in the zero rate category. The price in this case will remain the same with or without the VAT applied.

Calculating the VAT for your business products and services is pretty easy. All you need to do is remember the standard VAT rate on the goods and a few formulas for the calculation.

In essence, calculating the South Africa inclusive VAT and exclusive VAT on products is pretty straightforward. Simply put, all you need to know is to multiply and divide your product worth by 1.15 to determine the inclusive and exclusive VAT prices, respectively.

Standard VAT Rates

Depending on the country, the suppliers charge a certain amount to the businesses/ vendors on taxable items. The standard VAT rate on most goods and services across South Africa is around 15% with no supplementary rates applied.

Typically, the value-added tax is non-commutative, which means vendors can pay these charges in the previous production and distribution stages. In this case, the vendor is required to pay the differential between the output and input tax on government-authorized items or claim a VAT refund when applicable. There is also news about a VAT increase in South Africa in the near future.

Generally, the vendors are entitled to deduct VAT when they are making taxable supplies. Moreover, under a few circumstances, a vendor may claim deductions on services and products by businesses that are not registered for VAT.

• It is also important to note that VAT is charged differently at each stage and it remains proportional to the change in prices (goods and services).

Exempt Products or Services from VAT

In South Africa, there are some products and services on which VAT is not charged. And, on these items, no VAT deductions are allowed, even for associated input costs. In comparison, zero-rated supplies are those that permit suppliers to claim deductions on input VAT while also not incurring the original amount.

Here are some products and services exempted from VAT.

• Educational services are provided by public schools and universities across South Africa.
• Financial services, including debt security, derivatives, currency exchanges, long-term insurance programs, and credit granting.
• Residential accommodation.
• Childcare services, especially those provided by after-school supporting facilities and daycare institutions.
• Transportation services (through road and rail), especially when they are subjected to zero VAT rates.

Zero-Rated Supplies

The South African VAT Act has a list of supplies, services, and products that are usually taxed at zero rate. Put, in these services and goods, a zero-rate supply by a vendor means a VAT tax but at a 0% rate, meaning you do not have to pay any tax on these items. Moreover, as the zero-rated supplies fall in the category of taxable items, they are subject to input tax deductions.

Here is a list of zero-rated supplies according to the VAT Act in South Africa.

• Basic food items like beans, rice, milk, lentils, maize meal, beans, bread, untreated fruits, and preserved vegetables.
• Sanitary towels and other relevant items.
• International transport services and ancillary transport services.
• Services and products utilized in an export country under a charter agreement.
• Services that are directly linked with movable property in an export country.
• Municipal charges are imposed by the local municipality.
• Goods that are subject to fuel levy like kerosene (illumination), petrol, and diesel.
• Supplies bought from a tax-free shop or inbound duty.
• Welfare organizations offering profitable services are considered to be supplied to a public authority or a local municipality. This is outlined in the VAT Act section 4.5.
• Some insurances are related to international and cross-border transportation services.
• A few services are offered to non-South African residents. It applies to services related to movable goods and fixed property in South Africa. However, this does not include property that was exported later or the supply of movable property of a non-resident who is a registered vendor in the country.
• International roaming services by service providers that are registered with South African Electronic Communications Legislation.
• Enterprise transfers between the concerned party and the vendor.

VAT Remover for South Africa | Exclusive VAT Calculation

A Remove VAT Calculator helps you calculate the original price (price excluding VAT) from a total price that already includes VAT.

Opposite to the inclusive VAT, VAT exclusive is the price of a good or product before VAT is added to it. Usually, the VAT-exclusive prices are useful for situations when prices are aimed at vendors who are striving to recover the charged VAT, for instance, the trade prices for businesses.

Exclusive pricing favors business owners who do not want to take the tax into account when selling their products or want a detailed account of capital when creating invoices.

What is Exclusive VAT?

Speaking of the VAT-exclusive calculation, if the amount already has VAT included, you can easily find the excluded amount by dividing the total work by 1 + VAT percentage (15% in the case of South Africa). Please note that VAT-exclusive is always less than the amount inclusive of VAT charges.

Key Elements of VAT Exclusion

• Businesses do not need to consider taxes in their rates.
• Tax is added to the final transaction.
• Tax is isolated on the product sale receipt.

How to Remove VAT (Calculate Exclusive VAT)?

Like inclusive VAT pricing, it is pretty straightforward for businesses to calculate exclusive VAT pricing. All you need to do is perform some simple calculations for the reverse VAT calculations. Here is how it goes.

Method 1

The formula for exclusive VAT is Net Amount = Amount / (100 + VAT Rate) x 100.

Now, let me break it down for you.

• First, decide what the VAT rate is for the calculation. As for now, the standard VAT rate for most goods and services in South Africa is 15%.
• Now, the amount of your product is to be divided by (100 + VAT rate) = (100 + 15) = 115.
• Once done, you are required to multiply the obtained value by 100.
• The resultant value will give you the net amount of the product that does not include the VAT charges.
• From this net amount, you can also calculate the total VAT using the formula Total VAT = Total Amount – Net Amount.

Now that we have understood it, let me demonstrate this calculator through a real-life example. Suppose you have bought a product for the gross price of R500. The calculations to derive the net amount would be the following.

• The total amount of the product = R500.
• VAT Rate = 15%.
• As given by the formula, Net Amount = Amount (100 + VAT Rate) x 100.
• First, divide the amount by (100 + 15), which would become R500/ (100 + 15) = R500/ 115 = 4.3478.
• Now, multiply the obtained amount by 100. R4.3478 x 100 = R434.78.
• The net amount of this product is R434.78.

You can also get the total VAT from this amount.

• Total VAT = Amount – Net Amount.
• Total VAT = R500 – R434.78.
• The total VAT would be R65.22 on this product.

Method 2

The second formula to derive the exclusive VAT of a product is VAT Exclusive Price = VAT Inclusive Price / (1 + (VAT Rate / 100).

Now, let me break it down for you.

• First, decide what the standard VAT rate. In this case, it would be the standard VAT rate for South Africa, which is 15%.
• Now, divide this VAT rate by 100. 15/ 100 is equal to 0.15.
• Next, add 1 to the obtained answer, which is 1+0.15.
• Finally, you have to divide the VAT-inclusive price of the product by the obtained answer. The resultant amount would be exclusive VAT.

Next, let us understand it through a simple example. You bought a product for a gross amount of R500. Here is how you can derive exclusive VAT.

• Total amount = R500.
• VAT Rate = 15%.
• The formula is VAT Exclusive Price = VAT Inclusive Price / (1 + (VAT Rate / 100).
• First, divide the VAT rate by 100, which is 15/ 100 = 0.15.
• Adding 1 to the obtained value will be 1.15.
• Next, dividing the VAT-inclusive price by 1.15 would be R500/ 1.15 = R434.78.
• The VAT-exclusive price of this product is R434.78.

In essence, calculating the South African inclusive and exclusive VAT on products is pretty straightforward. Simply put, all you need to know is to multiply and divide your product worth by 1.15 to determine the inclusive and exclusive VAT prices, respectively. I hope this guide has helped everyone get accurate VAT charges on different products.

Add VAT for South Africa | Inclusive VAT Calculation

An Add VAT Calculator helps you calculate the total amount of a price after adding Value Added Tax (VAT).

The inclusive VAT means that the price of a product or service already includes the value of the tax. Most companies have the inclusive VAT displayed on the price of goods and services.

Inclusive VAT is significant as it helps you determine the real effect of the VAT tax on your financial statements and gives you an accurate representation of the revenue generated monthly and annually, exclusive of the VAT amount. Understanding the difference between inclusive and exclusive VAT is essential for accurate financial planning and compliance.

What is Inclusive VAT?

In SA, the VAT is charged at 15%, which means you would have to find the VAT amount to include in the pre-VAT amount. For this, you just have to multiply it by 0.15% and the answer to this calculation gives you the VAT-inclusive amount. Please note that the VAT-inclusive amount is always more than the VAT-exclusive amount.

Key Elements of VAT Inclusion

• The customer pays a flat rate for the product or goods.
• Calculations of the VAT are done prior to the transaction.
• The unit price is lower before the tax is applied.

How to Calculate Inclusive VAT?

You can do these simple calculations to figure out the inclusive VAT of your company’s bought products and services. So, dive right in.

The formula for inclusive VAT is Gross = Amount / 100 x (100 + VAT Rate).

Now, let me break it down for you.

• First, decide what the VAT rate is for your calculation. In this case, the current standard VAT rate in South Africa is 15%.
• Now, divide the product’s amount by 100.
• Once done, multiply the obtained amount by (100 + VAT rate). By converting this into a calculation, you will get the amount/ 100 x (100 + 15). The obtained amount is your gross amount including the VAT.
• Now that you have the gross amount, you can also calculate VAT from it through a simple formula, Total VAT = Gross – Price.

Let me demonstrate how to calculate inclusive VAT through a real example. Suppose you are selling a product for R500. Here are some simple calculations to derive the VAT from gross.

• Amount = R500
• VAT Rate = 15%
• As given by the formula, Gross = Amount / 100 x (100 + VAT Rate).
• Now, let’s enter the values in the formula.
• First, by dividing the amount by 100, we will get R500/ 100, which is around 5.
• Next, multiply it by (100 + VAT Rate), which is 5 x (100 + 15), which is around R575.
• Hence, the gross amount or inclusive VAT of this product would be R575.

Now, you can easily obtain the total VAT from the gross amount.

• Total VAT = Gross Amount – Amount.
• Total VAT = R575 – R500.
• The total VAT in this case is R75.