VAT in South Africa
The standard VAT rate is 15%. To take VAT off a price, divide by 1.15. To add it on, multiply by 1.15. A business has to register for VAT once its taxable turnover goes over R1 million in 12 months.
Add 15% VAT to a price, or work out the VAT already included in it.
To add 15% VAT, multiply the VAT-exclusive price by 1.15: R1,000 becomes R 1 150,00, including R 150,00 VAT. To remove VAT from R1,150, divide by 1.15 to get R1,000 before VAT. Subtracting 15% from the inclusive price is not equivalent.
VAT-inclusive price = VAT-exclusive price × 1.15. VAT-exclusive price = VAT-inclusive price ÷ 1.15.
This tool models a 15% standard-rated transaction only. Zero-rated and exempt supplies require different treatment; it does not determine whether a business must register for VAT.
Reference: SARS value-added tax guidance. Examples are calculated by Randwise, not quoted from the reference.
The standard VAT rate is 15%. To take VAT off a price, divide by 1.15. To add it on, multiply by 1.15. A business has to register for VAT once its taxable turnover goes over R1 million in 12 months.