Value Added Tax (VAT) is a major source of revenue for the South African government and affects virtually every purchase you make.
Current VAT Rate
The standard VAT rate in South Africa is 15%. This rate has been in effect since 1 April 2018, when it was increased from 14%. Some items are zero-rated (0% VAT) including basic food items like brown bread, milk, and rice.
Who Must Register for VAT?
Any business with a taxable turnover of R1 million or more in any 12-month period must register for VAT. Voluntary registration is available for businesses with turnover above R50,000.
Quick VAT Calculation
To add VAT: multiply by 1.15. To remove VAT from an inclusive price: divide by 1.15. Use our VAT Calculator for instant calculations.