How to calculate VAT in South Africa (15%)
Figures for the 2026/27 tax year. Prime rate checked 2 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
South Africa's VAT rate is 15%. Adding it is simple; taking it out of a price trips many people up. Here are the formulas, with examples.
Adding VAT
Multiply the price excluding VAT by 1,15.
R1 000 × 1,15 = R 1 150,00 including VAT. The VAT is R 150,00.
Removing VAT
Divide the price including VAT by 1,15.
R1 150 ÷ 1,15 = R 1 000,00 excluding VAT. The VAT is R 150,00.
The common mistake is to subtract 15% instead: R1 150 × 85% = R 977,50, which is R 22,50 too low. VAT is 15% of the price before VAT, so it's a smaller share, about 13,04%, of the total.
Finding the VAT in a total
Multiply the VAT-inclusive total by 15% ÷ 115%, or simply take the total minus the total ÷ 1,15.
| Total including VAT | Price excluding VAT | VAT included |
|---|---|---|
| R 115 | R 100,00 | R 15,00 |
| R 1 000 | R 869,57 | R 130,43 |
| R 5 750 | R 5 000,00 | R 750,00 |
| R 11 500 | R 10 000,00 | R 1 500,00 |
| R 100 000 | R 86 956,52 | R 13 043,48 |
Zero-rated and exempt
Some items carry no VAT. Zero-rated goods, such as brown bread, maize meal, milk, eggs, fresh fruit and vegetables, and exports, are taxed at 0%. Exempt supplies, such as residential rent, public transport fares and most financial services, aren't part of the VAT system at all.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
Add or remove VAT