VAT in South Africa
How to calculate VAT, 15% South Africa.
Adding 15% VAT and taking it out of a total, with worked examples in rand.
Adding 15% VAT
| Amount before VAT | VAT (15%) | Total |
|---|---|---|
| R 100.00 | R 15.00 | R 115.00 |
| R 500.00 | R 75.00 | R 575.00 |
| R 1 000.00 | R 150.00 | R 1 150.00 |
| R 2 500.00 | R 375.00 | R 2 875.00 |
| R 5 000.00 | R 750.00 | R 5 750.00 |
| R 10 000.00 | R 1 500.00 | R 11 500.00 |
| R 50 000.00 | R 7 500.00 | R 57 500.00 |
Amount × 1.15 = total
Taking 15% VAT out of a total
| Total | Amount before VAT | VAT in it |
|---|---|---|
| R 115.00 | R 100.00 | R 15.00 |
| R 575.00 | R 500.00 | R 75.00 |
| R 1 150.00 | R 1 000.00 | R 150.00 |
| R 2 300.00 | R 2 000.00 | R 300.00 |
| R 5 750.00 | R 5 000.00 | R 750.00 |
| R 11 500.00 | R 10 000.00 | R 1 500.00 |
Total ÷ 1.15 = amount before VAT
Guide
How to calculate VAT in South Africa.
The standard VAT rate in South Africa is 15%. Two sums cover almost everything:
- To add VAT to an amount, multiply it by 1.15. R1,000 × 1.15 = R1,150, of which R150 is VAT.
- To take VAT out of a total, divide it by 1.15. R1,150 ÷ 1.15 = R1,000. The VAT in a total is the total × 15 ÷ 115, so R1,150 × 15 ÷ 115 = R150.
A common mistake is taking 15% of the total (R1,150 × 15% = R172.50). That overstates the VAT, because the total already contains it.
Who charges VAT?
Only businesses registered as VAT vendors with SARS charge VAT. Registration becomes compulsory once your taxable supplies in a 12-month period pass the threshold set by SARS, and you can register voluntarily below it. If you are not registered, you do not add VAT to your quotes and invoices. Your accountant can confirm what applies to you.
VAT on your quotes and invoices, done for you
Making quotes and invoices? See what goes on a quote and a tax invoice. And CRM Online does it on every quote and invoice, with VAT201 preparation in the SA Accounting module.
VAT questions
Straight answers.
Anything else? Email us at support@crmonline.co.za.
What is the VAT rate in South Africa?
The standard VAT rate in South Africa is 15%. Some supplies, such as certain basic foods and exports, are zero-rated, and some are exempt.
How do I add 15% VAT to an amount?
Multiply the amount by 1.15. For example, R2,000 × 1.15 = R2,300, of which R300 is VAT.
How do I work out the VAT in a total?
Multiply the total by 15 and divide by 115. For example, the VAT in R2,300 is R2,300 × 15 ÷ 115 = R300, and the amount before VAT is R2,300 ÷ 1.15 = R2,000.
Why is 15% of the total the wrong answer?
Because the total already contains the VAT. Taking 15% of R1,150 gives R172.50, but the VAT in R1,150 is only R150.
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