South Africa VAT Calculator

What is VAT in South Africa?

Value-Added Tax (VAT) in South Africa is a broad-based tax charged at each stage of the supply chain on the value added at that stage. It is administered by the South African Revenue Service (SARS) under the Value-Added Tax Act 89 of 1991. VAT-registered vendors collect VAT on behalf of SARS when they make taxable supplies, and can claim back the VAT paid on their own business purchases (input tax).

South Africa's standard VAT rate is currently 15%, having been raised from 14% on 1 April 2018. The rate change was the first increase in 25 years and was introduced to address budget shortfalls. As of 2026 there is no scheduled change to the standard rate, though any future Budget Speech can adjust it.

South African VAT rates

South Africa applies two effective rates: the standard rate of 15% and a zero rate of 0%. There is no "reduced rate" tier in the South African system (unlike the UK's 5% reduced rate). Zero-rated supplies include:

• Basic foodstuffs: brown bread, maize meal, samp, dried beans, lentils, tinned pilchards, rice, vegetables, fruit, vegetable oil, eggs, milk and unsweetened milk powder
• Illuminating paraffin (used for lighting or cooking)
• Diesel and petrol (subject to fuel levy, but zero-rated for VAT)
• Exports of goods to customers outside South Africa
• International transport services
• Certain agricultural supplies

Some supplies are exempt from VAT entirely, meaning no VAT is charged and no input tax can be claimed on related purchases. Exempt supplies include financial services, certain residential accommodation, and educational services supplied by approved providers.

VAT registration in South Africa

You must register as a VAT vendor with SARS if your taxable supplies in any consecutive 12-month period exceed R1,000,000 (mandatory registration threshold). You may register voluntarily if your taxable supplies are at least R50,000 per year, which can be advantageous if your customers are other VAT vendors or if you have significant input tax to claim.

Once registered, you must issue tax invoices for all standard-rated supplies, file VAT returns (VAT201) on a monthly or bi-monthly basis depending on your turnover, and pay any VAT owing by the due date. SARS requires you to keep all VAT records for at least 5 years.

How to add 15% VAT to a net amount

To add 15% VAT to a net (ex-VAT) amount, multiply the net by 1.15. The formula is:

• Gross = Net x 1.15
• VAT amount = Net x 0.15

For example: R10,000 net becomes R11,500 gross, with R1,500 of VAT included.

How to remove VAT from a gross amount

To extract VAT from a gross (VAT-inclusive) amount, divide by 1.15. The formula is:

• Net = Gross / 1.15
• VAT amount = Gross - Net

For example: R11,500 gross has a net of R10,000 and contains R1,500 VAT. The fraction 15/115 (or 3/23) is often used as a quick mental check.

Full tax invoice requirements in South Africa

SARS distinguishes between a full tax invoice (required for supplies over R5,000) and an abridged tax invoice (permitted for supplies of R5,000 or less). A full tax invoice must include:

• The words "Tax Invoice" prominently displayed
• Your name, address, and VAT registration number
• The recipient's name, address, and VAT registration number (for supplies over R5,000)
• A unique, sequential invoice number
• The date of issue
• A description of the goods or services supplied
• The quantity or volume of the supply
• The price before VAT
• The VAT amount
• The total amount including VAT

Tidybill generates SARS-compliant tax invoices and lets you set your VAT registration number and apply the correct rate. See the full guide to SARS VAT invoice requirements.

VAT on services to foreign clients

If you are a South African VAT vendor supplying services to a client located outside South Africa, and the services are "exported" (consumed outside the Republic), the supply is zero-rated. This means you charge 0% VAT but can still claim input tax on your costs. The rules can be complex for services that are partly performed in South Africa, so it is worth confirming the exact nature of the supply before applying zero-rating. Services consumed or used in South Africa by a non-resident are generally still standard-rated at 15%.

Using this calculator for invoicing

This calculator gives you a quick reference for VAT amounts. For ongoing invoicing, Tidybill applies the correct VAT rate on each invoice, tracks your VAT position, and produces compliant tax invoices. See Tidybill pricing - free plan available.