VAT Calculator South Africa

Learn the step-by-step process for How to Calculate VAT. The standard VAT Rate is 15% that we already set in our VAT Calculator South Africa.

Check 5% Vat Calculator

From the time Vat was imposed in SA, a major change is observed in its rate. Therefore, to help you through this, we have generated a VAT calculator.  The rate, currently 15%, has already been set. All you need is to select your country and enter your amount and have your calculated results in a split second.

15% SA Vat Calculator is easy, but Reverse Vat Calculation is a bit tricky

The calculator will automatically detect SA’s vat rate for calculation once you’ve selected the country tab. Also, rates are updated regularly. But if you want to make any changes, you may edit the default rate accordingly.

How to Calculate 15% Vat in South Africa: (Inclusive and Exclusive)

There are two basic formulas for calculating vat for South Africa; Add tax and Remove Tax. To add tax, 15 percent of the amount is added to an amount, and the sum is called purchasing price.

Contrarily, removing means the eradication of 15% from the whole amount. But you do not need to entangle yourself in these calculations; select one from our SA Vat Calculator, and you are all sorted out.

How to Calculate VAT

Example

Find the VAT price and net price in SA (GST % is 15) for an amount of 30000 ZAR

Add Tax

Solution :
GST % = 15
Amount = 30000

Step 1 :
GST Price = (30000 * 15 ) / 100
=  4500 ZAR

Step 2 :
Net Price = 30000 + 4500
= 44500 ZAR

Hence the VAT Price is 4500 ZAR, and Net Price is 44500 ZAR

Remove Tax

Solution :
GST % = 15
Amount = 30000

Step 1 :
GST Price = 30000 – (30000 * ( 100 / (100 + 15)))
GST Price = 3913 ZAR

Step 2 :
Net Price = 30000 – 3913
= 26087 ZAR

Hence the VAT Price is 3913 Zar and Net Price is 26087 ZAR

Rules and Regulations:

South Africa (SA), the world’s top country for producing gold and platinum, has stabilized its economy through taxes at every end. A brief history is here to show how VAT works in South Africa.

For taxation on the final consumer’s end, VAT was implied in 1991. At that time, the rate was 10%, which increased to 14 % in 1993. Since then, the rate has seen a hike to 15% in 2018, and there are sheer chances of an increment coming soon. Since VAT contributes to 25% of the total tax revenue, paying is a compulsion.

It holds a considerable amount of South Africa’s economy, and there lies its significance. It replaced GST, which is generally included in the purchasing price. But when you are a vendor, you must register yourself as a VAT vendor in SARS.

Eligibility:

Taxes are implied by every country’s citizens, either as vendors or consumers. Final consumers pay the VAT with their every purchase. Every business with a turnover equal to or more than R1m in 12 months is subject to registration as a VAT vendor. The registration is compulsory and is levied by both input and output taxes, termed by the SARS calculator.

• Input Tax:

The tax that has already been paid and SARS owed to your enterprise till the valid date.

• Output Tax:

The enterprise collects the tax through services or sales and holds for some time on behalf of SARS until the submission date.

However, a business entity whose turnover is around R50 000 can register with SARS voluntarily. Being a VAT vendor benefits the business in specific ways. Collecting taxes and paying to SARS boosts revenues, but some businesses face shortcomings. Not to fall prey to these shortcomings, it is important to understand VAT in all aspects. Some of them are:

• Applies to all the transactions of products and services.
• VAT is directly proportional to the prices of products.
• Though VAT is charged at every phase of production and distribution of products, the burden falls on the final consumer if businesses cut down their tax bills.

Exempted Products/Services:

Some items and supplies are exempted from South African VAT and are termed zero-rated items. Not all but some of them are:

• Food items include bread, maize meal, eggs, rice, vegetables, etc.
• Goods that are subject to the fuel levy.
• Residential, Accommodation, rental, and roads and rail transport.
• An approved educational institute provides educational Services.
• Non-fee related financial services.
• International Transport Services.

How to Register:

SARS has made the procedure very consumer-friendly. To get yourself registered as a SA VAT vendor, all you need to do is:

• Login to SARS e-filling at SARS.
• Go to the organizations on the main menu.
• Fill out the form and click Register.
• Select VAT.

You will receive a tax notice from the official website, and the procedure is done.

TAX refund policy in SA:

SARS has executed a legal refund process for those with some amount due either from an enterprise’s main account or any sub-account. Your South African VAT refund can be used as:

• The leading enterprise can wave off outstanding debts of any of the branches.
• An outstanding tax of the leading enterprise or any branch can be set off the branch account.

Here is a list of all our VAT Calculator. It includes most countries in the world.