Value Added Tax (VAT) Calculator

Updated on July 20, 2022


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

What is a VAT Calculator?

This is the ideal way to calculate VAT because it is fast, accurate, and easy to use.

In order to compute and extract VAT, you don’t need to be an expert in complex mathematical formulas. That’s what the calculator is for.

Since South Africa’s VAT rate is 15%, you don’t have to worry about it when using the calculator at all. Filling in the numbers is all it takes to get started, and the results are almost always immediate.

In the absence of a VAT calculator, you’ll have to perform the math yourself.

How to calculate VAT?

When using the FreshBooks VAT calculator, you may quickly and easily figure out your VAT by entering the following information:

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

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 example of a product or service that is exempt from VAT.

Only a few commodities are exempt from the fuel levy, such as staple foods and gasoline. In order to avoid VAT reporting requirements, you must register your sales as zero-rated.

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

It’s common for goods and services in South Africa to have a VAT charge of 15 percent. Your company must register with SARS as soon as its yearly turnover surpasses R1 million and you must adhere with all VAT regulations.

FreshBooks is a one-stop-shop for all things accounting, tax, and bookkeeping. To be successful in the short term as well as the long term, you’ll need to be crystal clear in your thinking. What’s going on? Don’t miss out on the month-long free trial.