VAT Calculator South Africa 2026/2027

Add or remove 15% VAT from any amount, check whether you need to register, and work out VAT owed to SARS from your sales and purchases.

VAT Updated: 22 Sep 2026 · 2026/2027 tax year By Faheema Sheikh

VAT in South Africa: the quick answer

South Africa's standard VAT rate is 15%. To add VAT to an amount, multiply by 0.15 and add the result. To remove VAT from a total that already includes it, divide by 1.15 to get the amount excluding VAT. Registration is voluntary from R120,000 and compulsory from R2.3 million in taxable turnover (effective 1 April 2026).

Direction	Formula	Example on R1,000
Add VAT (exclusive → inclusive)	Amount × 1.15	R1,000 → R1,150
Remove VAT (inclusive → exclusive)	Amount ÷ 1.15	R1,150 → R1,000

Whether you're pricing an invoice, checking a receipt, or working out what SARS is owed at the end of a return period, VAT calculations run in two directions and it's easy to use the wrong one. This VAT calculator for South Africa adds or removes 15% VAT from any amount with a single toggle, checks whether your turnover means you should register, and works out exactly what's payable or refundable for a period from your sales and purchases if you're a VAT-registered freelancer, sole proprietor or small business.

Do you need to register for VAT?

Enter your business's annual taxable turnover to check which registration category applies.

Annual taxable turnover

Enter your turnover above

We'll tell you whether registration is not required, voluntary, or compulsory.

VAT Calculator

Add / Remove VAT VAT Owed to SARS

Amount excludes VAT Add 15% Amount includes VAT Remove 15%

Amount We'll add 15% VAT on top of this amount.

Enter an amount above Your VAT breakdown will appear here.

Amount excluding VAT R 0.00

VAT (15%) R 0.00

Amount including VAT R 0.00

Output VAT (on sales) R 0.00

Input VAT (on purchases) R 0.00

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How to Use This Calculator

Choose add VAT or remove VAT

Select whether your amount excludes VAT (add 15%) or already includes VAT (remove 15% to find the original amount).

Enter your amount

Type in the rand amount you want to calculate VAT on.

See the VAT breakdown instantly

The calculator shows the amount excluding VAT, the VAT amount, and the amount including VAT.

Check registration or VAT owed to SARS

Use the registration threshold checker if you're unsure whether to register, or switch to VAT Owed to SARS mode for a return period.

How VAT works in South Africa

Value-Added Tax is a consumption tax charged on most goods and services in South Africa, currently levied at a standard rate of 15%. It is collected at every stage of the supply chain, but the final cost is ultimately carried by the end consumer. If you run a VAT-registered business, you charge VAT on what you sell (output VAT) and can claim back the VAT you paid on business purchases (input VAT). The difference between the two is what you owe SARS, or what SARS owes you, for each return period.

VAT calculation formulas

/* Adding VAT to an exclusive amount */
VAT amount = Amount excl. VAT × 0.15
Amount incl. VAT = Amount excl. VAT × 1.15

/* Removing VAT from an inclusive amount (reverse) */
Amount excl. VAT = Amount incl. VAT ÷ 1.15
VAT amount = Amount incl. VAT − Amount excl. VAT

/* VAT owed to SARS for a period */
Output VAT = Total sales (incl. VAT) ÷ 1.15 × 0.15
Input VAT = Total purchases (incl. VAT) ÷ 1.15 × 0.15
VAT owed = Output VAT − Input VAT

The most common mistake is applying the wrong formula in the wrong direction: multiplying an already-inclusive total by 1.15 overstates it, and multiplying an inclusive total by 0.15 instead of dividing by 1.15 first overstates the VAT and understates the true exclusive amount. This calculator's toggle removes that risk by asking which direction your amount is in before it calculates anything.

South Africa's VAT rate history: 1991 to 2026

Date	Rate	Change
30 September 1991	10%	VAT introduced, replacing General Sales Tax (GST)
7 April 1993	14%	Increased from 10%; remained at 14% for 25 years
1 April 2018	15%	Increased from 14% under then-Finance Minister Malusi Gigaba
2025 Budget (proposed, withdrawn)	15.5% → 16%	Staged increase proposed for 1 May 2025 and 1 April 2026, reversed after Government of National Unity (GNU) coalition disagreement
2026/2027 (current)	15%	Unchanged since 2018

VAT registration thresholds explained

Whether you must, may, or cannot register for VAT depends entirely on your business's taxable turnover over any rolling 12-month period, not your profit or your personal income:

Below R120,000: you cannot register for VAT at all
R120,000 to R2.3 million: voluntary registration, a choice that weighs the admin burden and the 15% price effect on non-VAT-registered clients against the ability to claim input VAT
R2.3 million and above: compulsory registration within 21 business days of exceeding the threshold

The R2.3 million compulsory and R120,000 voluntary thresholds took effect from 1 April 2026, up from the previous R1 million and R50,000 respectively. A rolling 12-month period ending before that date is still assessed under the old thresholds.

Input VAT vs output VAT: why the direction matters

For a VAT-registered business, every transaction has two sides. When you invoice a client, the VAT you charge is output VAT: money you're collecting on SARS's behalf, not revenue you keep. When you pay a supplier for stock, software, rent or equipment, the VAT on that invoice is input VAT: VAT you've already paid that you can claim back. At the end of each VAT period (usually every two months for smaller businesses), you pay SARS the difference between the two. If your input VAT is higher than your output VAT, for example after a large equipment purchase, SARS refunds the difference to you instead.

Freelancers and sole proprietors: should you register voluntarily?

This is the decision most freelancers and small business owners actually need help with, since their turnover often sits below the compulsory threshold but above the point where voluntary registration becomes worth considering. Voluntary VAT registration makes sense once your input VAT (on equipment, software subscriptions, a home office, or stock) is high enough relative to your revenue that reclaiming it outweighs the cost of charging 15% more to clients who can't claim it back themselves. If most of your clients are VAT-registered businesses, that 15% is invisible to them since they reclaim it too. But if your clients are mostly individuals or exempt entities, voluntary registration effectively raises your price by 15% for no benefit to you beyond the input VAT you claim. Run the numbers on your actual input VAT total before registering voluntarily, not just your turnover.

Frequently Asked Questions

What is the VAT rate in South Africa in 2026?

The standard VAT rate in South Africa is 15% for the 2026/2027 tax year. A staged increase to 15.5% (from 1 May 2025) and then 16% (from 1 April 2026) was proposed in the 2025 Budget but was withdrawn after disagreement within the Government of National Unity, so the rate has remained at 15% throughout.

How do I calculate VAT on an amount that excludes VAT?

Multiply the amount by 0.15 to get the VAT, then add it to the original amount for the VAT-inclusive total. For example, R2,500 excluding VAT: VAT = R2,500 × 0.15 = R375, so the total including VAT is R2,875.

How do I remove VAT from a total that already includes VAT?

Divide the VAT-inclusive total by 1.15 to get the amount excluding VAT, then subtract that from the total to get the VAT portion. For example, R2,875 including VAT: amount excluding VAT = R2,875 ÷ 1.15 = R2,500, so the VAT portion is R375. This reverse calculation is exactly what this calculator's 'amount includes VAT' toggle does automatically.

When do I need to register for VAT in South Africa?

See 'VAT registration thresholds explained' above for the full R120,000 voluntary and R2.3 million compulsory breakdown, or use this calculator's registration threshold checker. One thing worth knowing beyond the thresholds themselves: if you should have registered and didn't, SARS can register you retroactively and hold you liable for output VAT on that turnover, whether or not you actually charged your customers for it.

What is the difference between input VAT and output VAT?

Output VAT is the VAT you charge your customers on sales. Input VAT is the VAT you pay to your own suppliers on business purchases and expenses. If you are VAT-registered, you pay SARS the difference: output VAT minus input VAT. If your input VAT exceeds your output VAT for a period, SARS refunds you the difference instead.

How do I calculate VAT owed to SARS?

Add up your total sales (VAT-inclusive) for the return period and work out the output VAT (sales ÷ 1.15 × 0.15). Do the same for your total business purchases and expenses (VAT-inclusive) to get input VAT. Subtract input VAT from output VAT: a positive result is payable to SARS, a negative result is refundable to you. This calculator's 'VAT Owed to SARS' mode does this calculation automatically from your sales and purchases figures.

Has South Africa's VAT rate changed before?

Yes. VAT was introduced in South Africa on 30 September 1991 at 10%, replacing the old General Sales Tax. It increased to 14% on 7 April 1993 and stayed there for 25 years. It rose to the current 15% on 1 April 2018. A further increase to 16% was proposed in the 2025 Budget but was reversed before taking effect, so 15% has applied continuously since 2018.

What goods are zero-rated or VAT-exempt in South Africa?

Zero-rated goods (0% VAT, but input VAT can still be claimed) include basic foodstuffs such as brown bread, maize meal, rice, dried beans, lentils, milk, eggs, vegetables, fruit and paraffin. VAT-exempt supplies (no VAT charged, and input VAT cannot be claimed) include most financial services, residential accommodation rental, public road and rail transport, and educational services from approved institutions. Zero-rated and exempt are not the same thing for VAT-registered businesses, since only zero-rated supplies allow an input VAT claim.

Do sole proprietors and freelancers need to charge VAT?

Only once you are VAT-registered. See 'Freelancers and sole proprietors: should you register voluntarily?' above for the full decision. Once you are registered, every invoice you issue must be a valid tax invoice: it needs to show your VAT registration number and the VAT amount charged separately from the price. Without those details, a client who is themselves VAT-registered cannot reclaim the input VAT from your invoice, which defeats half the reason for them to accept the extra 15% in the first place.