How to Calculate VAT in South Africa — Complete 2026 Guide

Value Added Tax (VAT) in South Africa is charged at 15% on most goods and services. Whether you're a business owner adding VAT to invoices, or a consumer trying to figure out the pre-VAT price of a purchase, knowing how to calculate VAT correctly is essential.

The South African VAT Rate in 2026

South Africa's VAT rate is 15%, as set by SARS (South African Revenue Service). This rate has been in place since 2018 when it was increased from 14%. There are no plans to change it in 2026.

Some goods and services are zero-rated (0% VAT), including basic food items like brown bread, maize meal, rice, milk, eggs, and vegetables. Exported goods are also zero-rated.

How to Add 15% VAT to a Price

To add VAT to an ex-VAT (exclusive) price: Price × 1.15

Example: R1,000 ex-VAT × 1.15 = R1,150 inclusive of VAT

The R150 difference is the VAT amount, which you collect on behalf of SARS and pay over monthly or bi-monthly.

How to Remove 15% VAT from a Price

To remove VAT from a VAT-inclusive price: Price ÷ 1.15

Example: R1,150 inclusive ÷ 1.15 = R1,000 ex-VAT

This is called "back-calculation" and is useful when you know the total price but need to find the pre-tax amount.

When Must You Register for VAT?

VAT registration is compulsory in South Africa when your taxable turnover exceeds R1 million in any 12-month period. You can voluntarily register if your turnover is above R50,000.

Once registered, you charge VAT on your sales (output tax) and claim back VAT on your business purchases (input tax). The difference is paid to SARS.

Use the Free South Africa VAT Calculator

Use our VAT Calculator to instantly add or remove 15% VAT from any amount. It also supports batch calculations for multiple line items — perfect for invoicing.

VAT on Imports

Goods imported into South Africa are subject to VAT at 15% plus import duties, calculated on the customs value of the goods. This applies to goods purchased from international platforms like Amazon, AliExpress, and Shein above the de minimis threshold.