VAT Calculator South Africa 2026

VAT registration thresholds changed on 1 April 2026

SARS raised the compulsory VAT registration threshold from R1 million to R2.3 million of taxable turnover in any 12-month period, and the voluntary threshold from R50 000 to R120 000, with effect from 1 April 2026. If you were working from the old R1 million figure, the number you need is now R2.3 million. Registered vendors stay registered — the change raises the point at which a business must register, it does not deregister anyone.

The VAT rate itself is unchanged at 15%, in force since 1 April 2018. This calculator adds or removes that 15% and nothing else, so it does not need updating when a threshold moves.

Worked examples

The formulas, so you can do it without the calculator

Add VAT: price × 1,15 = price including VAT. Remove VAT: price ÷ 1,15 = price excluding VAT. VAT amount: inclusive price − exclusive price.

The common error is subtracting 15% to remove VAT. That gives R977,50 on a R1 150 invoice instead of R1 000 — you under-claim input VAT by R22,50 on every R1 150, and the error compounds across a year of purchases. VAT is levied on the exclusive amount, so removing it is a division, not a subtraction.

What a valid South African tax invoice must contain

• The words Tax Invoice, VAT Invoice or Invoice
• The supplier’s name, address and VAT registration number
• A serial number and the date of issue
• A description of the goods or services, with quantity or volume
• The price excluding VAT, the VAT charged, and the total including VAT
• For invoices above R5 000, the recipient’s name, address and VAT number

Without those items you cannot claim the input VAT, however genuine the purchase. Keep the invoice, not just the bank statement.

Zero-rated is not the same as exempt

Zero-rated supplies are taxed at 0% — they are still VAT transactions and must be recorded in your VAT return. Brown bread, maize meal, rice, vegetables, fruit, milk, eggs, paraffin, illuminating paraffin and certain educational and medical items are zero-rated. Exempt supplies, such as residential rent and certain financial services, fall outside the VAT system entirely, so no input VAT can be claimed against them. Treating a zero-rated sale as exempt is one of the most common bookkeeping errors in small South African businesses.

VAT return periods and penalties

VAT returns are due by the 25th of the month following the end of the return period, or the last business day before if the 25th falls on a weekend or public holiday. Category A and B vendors submit every two months; Category C every six months; Category D (small businesses with turnover under R1,5 million) annually. A late payment attracts a 10% penalty plus interest at the SARS prescribed rate, accruing daily from the due date.