Value Added Tax (VAT) Calculator

Updated on May 30, 2022

FreshBooks offers a free VAT calculator to help you save time and money.


15% Standard
0% Zero
VAT amount:R00.00

What is a VAT Calculator?

If you want to calculate your VAT in an efficient and accurate manner, utilise a VAT Calculator.

Forget those complicated VAT addition and subtraction formulas. That’s the purpose of the calculator.

Using the calculator, you don’t even have to consider about South Africa’s 15% VAT rate because it is already included in the formula. As a result, all you have to do is fill in the fields with your numbers and the FreshBooks VAT calculator will give you the results instantly!

A VAT calculator is required to perform these calculations if you don’t have one.

How to calculate VAT?

You’ll have to figure out your VAT manually if you don’t have the FreshBooks VAT calculator.

Adding VAT

  • Step 1:Price multiplied by 15% VAT = Price X 1.15. For example, R75 X 1.15 = R86.25
  • Step 2:The result of these calculations is your gross price, inclusive of VAT. 

Deducting VAT

  • Step 1: To work out a price excluding VAT, you divide your price by 1.15 VAT Rate of 15%: Price / 1.15 = net price  
  • Step 2:The result of this calculation is your net price, excluding VAT. For example:  R175 / 1.15 = R152.17 = net price
Adding VAT
Click on the ‘Add VAT’ tab and type in your price without VATFor example: Item costs R100 VAT rate = +15%
Calculator automatically works out VAT at 15%For example: 15% of R100 = R15
You see the amount of VAT and the total amount, at the bottomFor example: Item + VAT = R115
Extracting VAT
Click on the ‘Remove VAT’ tab and enter your price with VATFor example: Item + VAT costs R100 VAT rate = 15%
15% VAT rate is in the calculator alreadyFor example: 15% of R100 = R15
See how much VAT is deducted and the total, at the bottomFor example: Cost – VAT = R85

You don’t have to imagine how much time this will save you. Our unique ROI Calculator gives you a personalised estimate of how much time and money you’ll save when you switch to FreshBooks.

How much is VAT in South Africa?

Currently, the South African Revenue Service (SARS) has set two VAT rates: a regular VAT rate and a zero VAT rate. Educational services are one of the few items and services that are completely exempt from VAT.

Only basic consumables and fuel subject to the fuel charge are exempt from the zero rate. In order to avoid paying VAT, you don’t have to charge your consumers, but you must register your sales as zero-rated for VAT.

Standard Rate of 23% :

Applies to most goods and services in the UK

Reduced Rate of 13.5% :

Applies to specific things, like domestic fuel and particular situations

Second Reduced Rate of 9% :

Applies to most goods and services in the UK

Livestock Rate of 4.8% :

Applies to specific things, like domestic fuel and particular situations

Most goods and services in South Africa are subject to a 15% VAT standard rate. You must register with SARS as soon as your company’s annual turnover exceeds R1 million, and you must ensure that you comply with all VAT requirements.

Accounting, tax, and bookkeeping are all handled using FreshBooks software. Your entire clarity is what you need to succeed both short and long term. What are you still sitting on your hands about? Take advantage of the month-long free trial now.

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