Amount Excl. VAT
RÂ 10Â 000,00
VAT Amount (15%)
RÂ 1Â 500,00
Amount Incl. VAT
RÂ 11Â 500,00
VAT in South Africa is levied at 15% on most goods and services. Businesses with taxable turnover above R1 million must register for VAT.
To add VAT: multiply by 1.15. To remove VAT from an inclusive amount: divide by 1.15 (or multiply by 100/115).
Basic food items (brown bread, maize meal, eggs, milk, fresh produce, etc.) are zero-rated. Certain financial services, residential rental, and educational services are exempt from VAT.
What is the VAT rate in South Africa?
The standard VAT rate in South Africa is 15%. Certain goods and services are zero-rated (0%) or exempt from VAT.
Who must register for VAT?
Businesses with taxable supplies exceeding R1 million in any 12-month period must register for VAT. Businesses with turnover between R50,000 and R1 million may register voluntarily.
What items are zero-rated?
Zero-rated items include basic food staples (brown bread, maize meal, rice, fresh fruit and vegetables, eggs, milk), petrol/diesel, certain exported goods, and international transport.
How do I calculate VAT from an inclusive price?
To extract VAT from a VAT-inclusive price: VAT = Price x 15/115. The exclusive price = Price x 100/115. For example, R1,150 inclusive = R1,000 exclusive + R150 VAT.
How Value Added Tax works at 15% and what is exempt or zero-rated
What is VAT in South Africa?
Value Added Tax (VAT) is a consumption tax of 15% levied on most goods and services in South Africa. When you buy something for R100, you actually pay R115 including VAT. VAT-registered businesses collect VAT from customers and pay it to SARS, but can claim back the VAT they pay on business purchases. The difference between output VAT (collected) and input VAT (paid) is what goes to SARS.
When must a business register for VAT?
Registration is compulsory if your taxable turnover exceeds R1 million in any 12-month period. Voluntary registration is allowed if turnover exceeds R50,000. Once registered, you must charge 15% VAT on all taxable supplies, file VAT returns every two months, and keep records for 5 years. De-registering is possible if turnover drops below R1 million.
What is the difference between zero-rated and exempt supplies?
Zero-rated goods have a 0% VAT rate — you do not charge VAT, but you can still claim input VAT on purchases. This includes basic foodstuffs (brown bread, maize meal, eggs, milk, fresh fruit and vegetables), petrol, diesel, and exports. Exempt supplies have no VAT and you cannot claim input VAT — this includes residential rent, public transport, financial services, and educational services.
How do I calculate VAT?
To add VAT: multiply the exclusive price by 1.15. So R1,000 becomes R1,150. To extract VAT from an inclusive price: divide by 1.15 (or multiply by 100/115). From R1,150 inclusive: VAT is R150, net amount is R1,000. The VAT fraction (15/115) is useful for quickly calculating the VAT portion of an inclusive price.
How do I file a VAT return?
VAT returns (VAT201) are filed every two months through SARS eFiling. The periods run January-February, March-April, May-June, and so on. The return is due by the 25th of the month following the period end (or the last business day before the 25th if it falls on a weekend). You report your output VAT (sales) and input VAT (purchases), and pay or claim the difference.
What is a VAT refund and when can I claim one?
If your input VAT (paid on business purchases) exceeds your output VAT (charged on sales) in a period, you can claim a refund from SARS. This commonly happens when a business makes large capital purchases, exports goods (zero-rated), or is in a startup phase. SARS typically audits refund claims, so keep all invoices and supporting documents.
What are the penalties for VAT non-compliance?
Late filing attracts a penalty of R250 per month, increasing for repeat offenders. Late payment incurs 10% penalty on the outstanding amount plus interest at the prescribed rate. Charging VAT without being registered is a criminal offence. Fraudulent VAT claims can result in penalties of up to 200% of the understated amount and criminal prosecution.
Which basic food items are zero-rated?
The zero-rated list includes: brown bread, maize meal, samp, mealie rice, dried beans, lentils, tinned pilchards and sardines, milk, eggs, rice, fresh vegetables and fruit, vegetable oil, and dried mealies. White bread, meat, chicken, and processed foods are NOT zero-rated — they attract 15% VAT. The list is periodically reviewed by government.
SARS-Aligned: Based on 2025 SARS rates and thresholds. For personal advice, speak to a qualified tax practitioner.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms