How the VAT calculator works
Last updated 9 November 2026
Value-added tax (VAT) is a tax on most goods and services sold in South Africa. Businesses that are registered for VAT add it to their prices and pay it over to SARS. The standard rate is 15%.
This calculator does two jobs. Add VAT takes a price before VAT and works out the VAT and the total you’ll pay. Remove VAT takes a price that already includes VAT and splits it into the price before VAT and the VAT part.
To add VAT, the calculator multiplies the amount by 1.15. To remove it, it divides the amount by 1.15. The VAT part of a VAT-inclusive price is 15/115 of that price.
Worked example
Say a supplier quotes you R 1 000 before VAT.
- VAT is R 1 000 × 15% = R 150.00.
- The total you pay is R 1 000 + R 150.00 = R 1 150.00.
Now go the other way. A till slip shows R 1 150.00, including VAT, and you need the amount before VAT for your records.
- The price before VAT is R 1 150.00 ÷ 1.15 = R 1 000.00.
- The VAT is R 1 150.00 − R 1 000.00 = R 150.00.
What the figures mean
- Price before VAT (also called the VAT-exclusive price) is the amount the seller keeps.
- VAT is the tax the seller collects for SARS.
- Price including VAT (the VAT-inclusive price) is what you actually pay. Prices shown to consumers in South African shops must include VAT.
- Output VAT is the VAT a registered business charges its customers. Input VAT is the VAT it pays on its own business purchases. The business pays SARS the difference, so in the end the VAT is carried by the final buyer.
If you run a small business, quotes from suppliers may show prices with or without VAT. Check which one you are looking at before you compare quotes, and use the calculator to put them on the same footing. A valid tax invoice from a VAT-registered supplier shows the VAT amount separately, along with the supplier’s VAT number. If you are not registered for VAT, you can’t claim the VAT back, so the price including VAT is your real cost.
Things to watch
- Don’t take 15% off a VAT-inclusive price to remove VAT. That takes off too much. On R 1 150.00, 15% would be R 172.50, but the VAT inside the price is only R 150.00. Always divide by 1.15 instead.
- Some items are zero-rated, which means VAT is charged at 0%. Examples include many basic foods, such as brown bread, maize meal, rice, fresh fruit and vegetables, eggs and milk.
- Some supplies are exempt from VAT altogether, such as most residential rent, public transport fares and many financial services.
- Only VAT-registered businesses charge VAT. If you buy a home from a VAT-registered developer, VAT is included in the price and no transfer duty is payable. The transfer duty calculator covers this.
- Rounding: amounts are worked out to the cent. Invoices sometimes round VAT per line item, so totals can differ by a few cents.
Sources
The standard VAT rate of 15% applies for the 2026/27 tax year. It was last checked on 9 November 2026, and the full list of sources is at the bottom of this page.