The formulas
Add VAT: VAT = amount × 15% inclusive = amount × 1.15 Remove VAT: exclusive = amount ÷ 1.15 VAT = amount × 15 ÷ 115
Results are rounded to the cent using standard rounding.
Worked examples
Add VAT to R1 000
R1 000 × 15% = R150 VAT, so the VAT-inclusive price is R1 150.
Remove VAT from R1 150
R1 150 × 15/115 = R150 VAT, so the price excluding VAT is R1 000.
Frequently asked questions
What is the VAT rate in South Africa?
15%, since 1 April 2018. Before that it was 14% from 1 April 1993. Budget 2026 made no change to the rate.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.15. The VAT portion is the price × 15/115. Taking 15% of the inclusive price is a common mistake and gives the wrong answer.
Which items have no VAT?
Some basic foods are zero-rated, including brown bread, maize meal, samp, rice, dried beans, fresh fruit and vegetables, milk and eggs. Some services, such as most residential rent and public transport, are exempt.
When must a business register for VAT?
Registration is compulsory once taxable supplies exceed the threshold in a 12-month period (R2.3 million according to Budget 2026). Smaller businesses can register voluntarily from R120 000.