VAT Calculator South Africa 2026 — Add or Remove 15% VAT

Reviewed & Verified
Written by the Independent Editorial Team · Reviewed & Verified by Solly Maanaso, CA(SA)

Calculate VAT on any amount instantly — add 15% VAT to a price, or extract the VAT portion from a VAT-inclusive amount.

15%
South Africa's standard VAT rate — confirmed for 2026
VAT-exclusive amount R 500.00
VAT amount (15%) R 75.00
VAT-inclusive total R 575.00
Add VAT: amount × 1.15
Remove VAT: amount ÷ 1.15 (VAT portion = amount × 15/115)
The VAT rate is confirmed at 15% for 2026. Two previously proposed increases — to 15.5% (from 1 May 2025) and 16% (from 1 April 2026) — were both reversed before taking effect. South Africa's standard VAT rate has remained 15% since April 2018.

This calculator provides an estimate for standard-rated (15%) transactions. Zero-rated and exempt supplies are not subject to VAT — see the sections below.

How to calculate VAT — the formula

Adding VAT (VAT-exclusive → VAT-inclusive)

To add 15% VAT to a price that excludes VAT, multiply by 1.15.

Example: A product costs R500 excluding VAT.
R500 × 1.15 = R575 (VAT-inclusive price)
VAT amount: R575 − R500 = R75

Removing VAT (VAT-inclusive → VAT-exclusive)

To remove 15% VAT from a price that already includes VAT, divide by 1.15.

Example: A product costs R575 including VAT.
R575 ÷ 1.15 = R500 (VAT-exclusive price)
VAT amount: R575 − R500 = R75 (or calculate directly: R575 × 15/115 = R75)

To find Formula
VAT-inclusive price (from exclusive) Amount × 1.15
VAT-exclusive price (from inclusive) Amount ÷ 1.15
VAT amount (from exclusive price) Amount × 0.15
VAT amount (from inclusive price) Amount × 15/115

Not everything is taxed at 15% — zero-rated and exempt supplies

Zero-rated supplies

Taxed at 0% — but they are still legally "taxable supplies." This means a VAT-registered vendor selling zero-rated goods can still claim input VAT on related business expenses.

Exempt supplies

Fall outside the VAT system entirely. No VAT is charged, but the vendor cannot claim input VAT on expenses related to making that exempt supply.

Category (Zero-rated - 0% VAT) Examples
Basic foodstuffs Brown bread, maize meal, samp, dried beans, lentils, tinned pilchards/sardinella, milk powder, rice, vegetables, fruit, vegetable oil, milk (unflavoured), cultured milk, eggs
Fuel Petrol, diesel, illuminating paraffin (subject to the fuel levy)
Exports Goods or services exported from South Africa (conditions apply)
Farming Specified goods used for farming purposes
Business sales Sale of an enterprise as a going concern
Note: Flavoured milk, milkshakes, and most processed/combined food products are standard-rated (15%) — zero-rating applies only to the specific basic, unflavoured items listed in the VAT Act.
Category (Exempt supplies - No VAT) Examples
Financial services Non-fee-related financial services (e.g., interest on loans)
Education Educational services provided by an approved educational institution
Housing Residential rental accommodation
Transport Public road and rail passenger transport
Note: Fee-based financial services (e.g., advisory fees, account management fees) ARE subject to the standard 15% VAT rate — only non-fee-related financial services (like interest margins) are exempt.
Source: PwC Tax Summaries SA — South Africa Corporate Other Taxes; National Treasury

Do you need to register for VAT? — 2026 thresholds

If you run a business in South Africa, VAT registration depends on your turnover (the value of your taxable supplies):

Registration type Threshold Effective date
Compulsory Taxable supplies exceed R2.3 million per year (increased from R1m) From 1 April 2026
Voluntary Taxable supplies exceed R120,000 per year (increased from R50k) From 1 April 2026
If you are already voluntarily registered, your existing voluntary VAT registration is not automatically cancelled if your turnover falls below the new R120,000 threshold.

VAT201 filing deadlines

If you are VAT-registered, your VAT201 return and payment are due:

• eFiling submissions: last business day of the month following your tax period
• Manual submissions: the 25th day of the month following your tax period
Late VAT payments attract a penalty of 10% of the outstanding tax, plus interest at the prescribed rate.

Frequently Asked Questions

The standard VAT rate in South Africa is 15% for 2026. Two previously proposed increases — to 15.5% from 1 May 2025, and to 16% from 1 April 2026 — were both reversed before taking effect (the second increase was reversed by clause 13 of a Bill introduced on 24 April 2025). The rate has remained at 15% since it last changed, from 14% to 15%, on 1 April 2018.
To add VAT to a price that excludes VAT, multiply the amount by 1.15. For example, R500 × 1.15 = R575 (the VAT-inclusive price), meaning R75 of VAT was added. To remove VAT from a price that already includes VAT, divide by 1.15. For example, R575 ÷ 1.15 = R500 (the VAT-exclusive price).
If you have a VAT-inclusive price and want to know the VAT portion, multiply the amount by 15/115 (or 0.1304). For example, on a R575 VAT-inclusive price: R575 × 15/115 = R75 of VAT.
Zero-rated supplies are taxed at 0% but remain legally "taxable supplies" — a VAT-registered vendor selling zero-rated goods can still claim input VAT on related business expenses. Exempt supplies fall outside the VAT system entirely: no VAT is charged, but the vendor also cannot claim input VAT on expenses related to making that exempt supply. Examples of zero-rated items include basic foodstuffs and exports; examples of exempt supplies include residential rental accommodation and educational services.
You must register for VAT and charge it if your taxable supplies exceed R2.3 million per year (the compulsory threshold from 1 April 2026, increased from R1 million). You may voluntarily register if your taxable supplies exceed R120,000 per year (increased from R50,000, also from 1 April 2026). Below the voluntary threshold, you generally cannot register or charge VAT.
Not exactly. VAT (Value-Added Tax) is charged at each stage of the production and distribution chain, with registered vendors able to claim back ("input") VAT paid on their own business purchases — only the final consumer ultimately bears the full cost. A sales tax, by contrast, is typically only charged once, at the final point of sale. South Africa uses a VAT system at a standard rate of 15%.

Related guides and tools

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Income tax calculator → Business tax calculator → Provisional tax calculator →

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VAT — complete guide →

Tools

Tax deadlines 2026/2027 →
← Back to: VAT — Complete Guide

Sources:

  1. SARS — Value-Added Tax — sars.gov.za/types-of-tax/value-added-tax/ (15% standard rate; reversed rate increases; registration thresholds)
  2. SARS — VAT 404 Guide for Vendors (Issue 15) — sars.gov.za (VAT formula; zero-rated and exempt supply lists; VAT201 deadlines; 10% late payment penalty)
  3. SARS — Budget 2026 FAQ — sars.gov.za (R2.3 million compulsory threshold; R120,000 voluntary threshold, both effective 1 April 2026)
  4. SARS — "What is the new Threshold for VAT Registration?" — sars.gov.za
  5. National Treasury — Zero-rated and exempt supplies — treasury.gov.za
  6. PwC Tax Summaries — South Africa — Corporate — Other Taxes — taxsummaries.pwc.com/south-africa

Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify VAT rate and registration thresholds.

This content is for informational purposes only and does not constitute professional tax advice. Consult a registered tax practitioner for advice specific to your situation.