The current standard VAT rate in South Africa is 15%, as set by SARS. This has been in effect since 1 April 2018. Some items are zero-rated (0%) or exempt from VAT entirely.

To add VAT: multiply the price by 1.15. To remove VAT from a VAT-inclusive price: divide by 1.15. For example, R100 + 15% VAT = R115. And R115 ÷ 1.15 = R100 (the price before VAT).

Zero-rated items include basic food items (brown bread, maize meal, rice, vegetables, fruit, milk, eggs), paraffin, certain educational items, and some medical supplies. Zero-rated means VAT is charged at 0%, not that they are exempt.

VAT-exclusive prices do not include VAT — the VAT will be added on top. VAT-inclusive prices already include the 15% VAT. In South Africa, displayed prices for consumers must be VAT-inclusive by law.

The VAT rate increased from 14% to 15% on 1 April 2018, as announced by then Finance Minister Malusi Gigaba in the 2018 Budget Speech.

You must register for VAT if your taxable turnover exceeds R1 million in any 12-month period, or if you expect it to. Voluntary registration is available if your turnover exceeds R50,000.

VAT returns are typically submitted every two months (bi-monthly), though SARS may assign different periods. Categories A and B submit bi-monthly, Category C submits every 6 months, and Category D (small businesses) submits annually.

SARS imposes a 10% penalty on late VAT payments, plus interest at the SARS prescribed rate. Interest accrues daily from the due date until the date of payment. Repeated late submissions may result in additional penalties.

Yes, VAT-registered businesses can claim input VAT (VAT paid on purchases and expenses) against output VAT (VAT charged on sales). The difference is paid to SARS or claimed as a refund.

VAT rate changes require legislative amendments. Any proposed changes would be announced in the national Budget Speech. SumZA’s calculator automatically updates when official rate changes are confirmed.