What is the standard VAT rate in South Africa?

The statutory standard VAT rate in South Africa is 15%, collected by the South African Revenue Service (SARS) under the Value-Added Tax Act No. 89 of 1991.

How do I remove 15% VAT from a South African price?

To remove 15% VAT from a gross amount, divide the inclusive figure by 1.15. The result is the pre-tax net amount. The VAT portion is calculated as Gross minus Net, or alternatively: Gross × (15 / 115).

What is the SARS VAT registration threshold?

Mandatory registration is required if taxable supplies exceed R1 million in any consecutive 12-month period. Voluntary registration is permitted once taxable turnover exceeds R50,000.

South Africa VAT Calculator: 15% SARS Rate, Add & Remove Formula

Value-Added Tax in South Africa is an indirect destination-based tax levied at a standard statutory rate of 15% under the administration of the South African Revenue Service (SARS).

Whether quoting South African Rand (ZAR) amounts to commercial partners or reclaiming input tax via SARS eFiling, calculating 15% VAT accurately is vital to avoiding severe understatement penalties. You can perform these calculations instantly with our live VAT calculator.

SARS VAT Rate Structure

Category	Rate	Scope of Goods & Services
Standard Rate	15.0%	Most commercial transactions, electronics, fuel, manufactured goods, professional fees, telecommunications.
Zero Rate	0.0%	19 basic foodstuffs (brown bread, maize meal, samp, dried beans, lentils, milk, rice, eggs), paraffin, exported goods.
Exempt Supplies	Exempt	Non-fee financial services, residential rental accommodation, public passenger road/rail transport.

How to Add and Remove 15% South African VAT

1. Adding 15% VAT (Exclusive to Inclusive)

To compute the total price charged to a customer on a net quote:

Add 15% Formula

Gross = Net × 1.15 | VAT = Net × 0.15

Example: Professional services quoted at R4,000.00 Net:
• VAT (15%): R4,000.00 × 0.15 = R600.00
• Gross Total Payable: R4,000.00 + R600.00 = R4,600.00

2. Removing 15% VAT (Inclusive to Exclusive / Reverse VAT)

Many South African invoices and retail receipts show only the VAT-inclusive total. To extract the tax portion, do not deduct 15% directly from the gross price.

Remove 15% Formula (The 15/115 Factor)

Net = Gross ÷ 1.15 | VAT = Gross × (15 ÷ 115)

Example: A business expenditure receipt of R1,380.00 Gross:
• Net Value: R1,380.00 ÷ 1.15 = R1,200.00
• Claimable VAT: R1,380.00 × (15 ÷ 115) = R180.00

SARS VAT 201 Filing & Compliance

Registered vendors must submit the VAT 201 return and pay their net tax balance on or before the 25th day of the month following their designated tax period (extended to the last business day of the month if submitted via SARS eFiling).

Valid South African tax invoices must prominently display the words "Tax Invoice" or "VAT Invoice", along with the supplier's 10-digit VAT registration number, the recipient's details (for invoices over R5,000), and a clear price breakdown.

Frequently Asked Questions About South African VAT

When did South Africa increase VAT from 14% to 15%?

The statutory standard VAT rate was raised from 14% to 15% on 1 April 2018, and 15% remains the active statutory standard rate today.

Which foods are zero-rated for VAT in South Africa?

Section 11(1)(j) of the VAT Act zero-rates 19 basic foodstuffs including brown bread, maize meal, samp, mealie rice, dried beans, lentils, tinned pilchards, milk powder, rice, fresh vegetables, fresh fruit, and vegetable oil.