How South African VAT is calculated
The standard VAT rate in South Africa is 15%. There are only two sums you ever need:
- Adding VAT: take the price excluding VAT and multiply by 1.15. R1,000 × 1.15 = R1,150, of which R150 is VAT.
- Removing VAT (finding the VAT inside a VAT-inclusive price): divide the total by 1.15. R1,150 ÷ 1.15 = R1,000 excluding VAT, so the VAT is R150.
Quick shortcut: to find the VAT inside an inclusive price, multiply the total by 3 and divide by 23 (15 ÷ 115). R1,150 × 3 ÷ 23 = R150.
Who charges VAT?
Only businesses registered for VAT charge it. If you're not registered you don't add 15% — and you can't claim it back either. Not sure where you stand? Read do I need to register for VAT and our full VAT guide for tradesmen.
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