How to calculate VAT in South Africa
- Add VAT: multiply the price excluding VAT by 1.15. R1,000 excl. VAT = R1,150 incl. VAT.
- Remove VAT: multiply the VAT-inclusive amount by 15/115 (the tax fraction) to get the VAT, or divide by 1.15 for the price excluding VAT. R1,150 incl. VAT contains R150 VAT.
Do I have to register for VAT?
From 1 April 2026 registration is compulsory once your taxable supplies exceed R2.3 million in any 12 months (up from R1 million). You can register voluntarily from R120,000. Registered vendors submit a VAT201 every two months (Category A/B) or monthly if turnover is over R30 million.
Zero-rated and exempt items
Basic foods such as brown bread, maize meal, rice, fresh fruit and vegetables, eggs, milk and dried beans are zero-rated (0% VAT). Exports are zero-rated too. Exempt supplies (no VAT charged and no input VAT claimed) include residential rent, most financial services and public transport.
Need a proper tax invoice? Use the free VAT invoice generator.
Frequently asked questions
How do I remove 15% VAT from a price?
Divide the VAT-inclusive price by 1.15. The VAT portion is the price × 15 ÷ 115.
What is the VAT rate in South Africa in 2026?
15%. The proposed increases announced in 2025 were withdrawn, so the rate stayed at 15%.
What is the VAT registration threshold in 2026?
R2.3 million of taxable supplies in 12 months from 1 April 2026 (compulsory), and R120,000 for voluntary registration.
Last updated 2026-10-10. Sources: SARS rates of tax for individuals, medical tax credit rates, interest exemption, capital gains tax and the rate-per-kilometre schedule on sars.gov.za.