VAT Calculator

The standard VAT rate in South Africa is 15%, which has been in effect since 1 April 2018. Certain supplies are zero-rated (0%) or exempt from VAT entirely.

A business must register for VAT if its taxable supplies exceed or are expected to exceed R2,300,000 in any consecutive 12-month period. Voluntary registration is available for businesses with taxable supplies exceeding R120,000 in a 12-month period.

Zero-rated supplies are taxable at 0% and include basic food items (e.g., bread, milk, eggs), petrol, diesel, paraffin, and exports. Exempt supplies are not subject to VAT at all and include financial services, residential accommodation, public transport, and educational services. The key difference is that vendors supplying zero-rated goods can still claim input VAT, whereas those supplying exempt goods cannot.

To extract 15% VAT from an inclusive price, divide the total by 1.15. The difference between the total and the result is the VAT amount. For example, for a R1,150 inclusive price: R1,150 / 1.15 = R1,000 (excl. VAT), and the VAT is R150.

VAT returns are submitted based on your tax period category. Most businesses file bi-monthly (every two months). Businesses with turnover exceeding R30 million file monthly. Some smaller businesses may qualify for quarterly or bi-annual filing periods.

You can only claim input VAT on goods and services acquired for making taxable supplies (standard-rated or zero-rated). You cannot claim input VAT on exempt supplies, entertainment expenses (with limited exceptions), motor cars (passenger vehicles), or membership fees for clubs providing recreational facilities. You must also have a valid tax invoice to support each claim.