This free VAT calculator helps you quickly calculate value-added tax. Perfect for freelancers, contractors, and small businesses in South Africa.
VAT, or value-added tax, is a consumption tax that you have to add to your invoices if you’re registered for VAT.
The VAT rate is 15%, and VAT applies whether you live in Johannesburg, Cape Town, Durban, Pretoria, or anywhere in else in South Africa.
You have to register for VAT with the South African Revenue Service (SARS) if your turnover is more than R1 million in a 12 month period, or you’re expecting to exceed this threshold in a 12 month period.
Once you’re registered for VAT, you have to
A VAT calculator is a tool that helps you calculate value-added tax (VAT) for your products or services. If you’re registered for VAT, you have to include VAT on your invoices, unless you sell zero-rated goods or services.
The calculator helps you work out the price including or excluding VAT, and to comply with the rules and regulations in South Africa.
Add VAT to the price
To figure out the total price with VAT, simply multiply the original price by 1,15.
R1 000 x 1,15 = R1 150
Work out the VAT amount to add
To figure out how much VAT you’ll be charging, simply multiply the original price by 0,15.
R1 000 x 0,15 = R150
Exclude VAT from the price
If you want the price without VAT, divide by 1,15.
R1 150 / 1,15 = R1 000
Work out the VAT amount that was added
To figure out how much VAT was included in the price you can take the price with VAT minus the price without VAT.
R1 150 – R1 000 = R150
| Price excluding VAT | VAT amount | Price including VAT |
|---|---|---|
| R500 | R75 | R575 |
| R1 000 | R150 | R1 150 |
| R1 500 | R225 | R1 725 |
| R2 000 | R300 | R2 300 |
| R2 500 | R375 | R2 875 |
| R3 000 | R450 | R3 450 |
| R3 500 | R525 | R4 025 |
| R4 000 | R600 | R4 600 |
| R4 500 | R675 | R5 175 |
| R5 000 | R750 | R5 750 |
These are some examples of zero-rated items that you shouldn’t charge VAT on:
You should consult a tax agent or accountant for specific questions regarding your business.
Source: Sars.gov.za
These are some examples of zero-rated items that you shouldn’t charge VAT on:
You should consult a tax agent or accountant for specific questions regarding your business.
Source: Sars.gov.za
You can easily use Excel to calculate VAT. Simply use this formula: =[cell]*1.15. For example, if your price is R500, then the formula would be =500*1.15, which would be R575.
You can also use a free VAT calculator to work out VAT.
To add VAT to a VAT exclusive amount, you simply multiply the price by 1.15, for example R100 x 1.15 = R115.
To exclude VAT from an amount, you divide the price by 1.15, for example R115 / 1.15 = R100.
It’s easy to work out VAT with a VAT calculator. Just enter the amount and choose whether it includes VAT or not. You’ll instantly see the VAT amount and the total including VAT.
VAT, or value-added tax, is a 15% tax rate that’s added to the sale of most goods and services in South Africa. It’s an indirect tax, which means that businesses collect it from their customers and pay it to the South African Revenue Service (SARS).
If you sell an R500 item, the customer pays R500 + R75 VAT. You pay those R75 on to SARS.
However, there’s a benefit for you being registered for VAT: You can claim back VAT that you pay to suppliers, which reduces your costs. This is called input tax credits.
You have to register for VAT if you earn over R1 million within 12-months. You can also choose to register voluntarily, even if you don’t hit that limit. The benefits of doing so is that you can claim VAT refunds if you pay more VAT to suppliers than you collect from customers. It’ll also make you look more professional and reliable.
However, note that once you register for VAT, you have to issue VAT invoices, bookkeep all VAT transactions, submit VAT returns, and pay VAT if you’ve collected more VAT than you’ve paid.
Good question, you can create VAT invoices for free with free invoicing software. Invoicing software is the quick an reliable way to create invoices, and it’ll make your business look more professional. You’ll also better be able to stay on top of your invoices, since all your invoices are safely stored in one place, and you’ll be notified if an invoice is overdue.
Try free invoicing software now
VAT stands for value-added tax. It’s used by over 170 countries in the world, although some countries refer to it as goods and services tax (GST). It can also be called sales tax.
VAT inclusive simply means that the stated amount already includes VAT. To figure out the price without VAT, you can divide the amount by 1.15, or you can use a free VAT calculator.
VAT exclusive simply means that the stated amount doesn’t include VAT. To figure out the price with VAT, you can multiply the amount by 1.15, or you can use a free VAT calculator.
The VAT threshold in South Africa is R1 million within a 12-month period. Once you hit that, you have to register for VAT with SARS. You also have to register if you expect to hit that threshold within 12-months.
What are you waiting for?
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