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South Africa

Value Added Tax (VAT) Calculator

Save time and energy with FreshBooks free VAT calculator.

15% Standard
0% Zero
VAT amount: R00.00
Total: R00.00
15% Standard
0% Zero
VAT amount: R00.00
Total: R00.00

30 Million

business owners have saved up to R5,000/year on accounting costs with FreshBooks

Try it free for 30 days. No credit card required. Cancel anytime.

What is a VAT Calculator?

A VAT Calculator is the smartest way to work out your VAT because it’s quick, precise and uncomplicated.

Forget the confusing formulas for adding and extracting VAT. That’s what the calculator’s for.

You don’t even need to think about the rate of VAT – it’s all set up with South Africa’s 15% VAT rate as part of the calculator’s algorithm. So you just add your amounts into the fields and the FreshBooks VAT calculator gives you instant answers.

Without the VAT calculator, you need to work through these calculations yourself.

How to calculate VAT?

Without the FreshBooks VAT calculator, you need to work out your VAT manually – like this:

Adding VAT

  • Step 1: Price multiplied by 15% VAT = Price X 1.15. For example, R75 X 1.15 = R86.25
  • Step 2: The result of these calculations is your gross price, inclusive of VAT. 

Deducting VAT

  • Step 1: To work out a price excluding VAT, you divide your price by 1.15 VAT Rate of 15%: Price / 1.15 = net price  
  • Step 2: The result of this calculation is your net price, excluding VAT. For example:  R175 / 1.15 = R152.17 = net price

You can easily add and remove VAT from your prices using FreshBooks’ VAT Calculator. Keep your head in your business, not distracted by tricky VAT calculations. 

Adding VAT
Click on the ‘Add VAT’ tab and type in your price without VAT For example: Item costs R100 VAT rate = +15%
Calculator automatically works out VAT at 15% For example: 15% of R100 = R15
You see the amount of VAT and the total amount, at the bottom For example: Item + VAT = R115
Extracting VAT
Click on the ‘Remove VAT’ tab and enter your price with VAT For example: Item + VAT costs R100 VAT rate = 15%
15% VAT rate is in the calculator already For example: 15% of R100 = R15
See how much VAT is deducted and the total, at the bottom For example: Cost – VAT = R85

You don’t have to imagine how much time this will save you. Our unique ROI Calculator gives you a personalised estimate of how much time and money you’ll save when you switch to FreshBooks.

How much is VAT in South Africa?

The South African Revenue Service (SARS) has currently set two rates for VAT – standard rate and zero rate. There are also a small number of goods and services that are exempt from VAT altogether, like educational services.

The zero rate only applies to a few items, like basic foods and fuel subject to the fuel levy. You don’t have to charge any VAT to your customers, but you do need to report your sales as zero rated for VAT.

Standard Rate of 23% :

Applies to most goods and services in the UK

Reduced Rate of 13.5% :

Applies to specific things, like domestic fuel and particular situations

Second Reduced Rate of 9% :

Applies to most goods and services in the UK

Livestock Rate of 4.8% :

Applies to specific things, like domestic fuel and particular situations

The current standard rate of VAT is 15% and this applies to most goods and services in South Africa. As soon as your business makes R1 million annual turnover, you must register with SARS and make sure you comply with all the VAT regulations.

FreshBooks software unifies your business’s bookkeeping, tax and accounting. Giving you the complete clarity you need to achieve short and long term success. What are you waiting for? Start your month’s free trial today.

TRY IT FREE Try it free for 30 days.
No credit card required. Cancel anytime.
TRY IT FREE Try it free for 30 days.
No credit card required. Cancel anytime.

Why Business Owners Love Freshbooks

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Save up to 553 hours each year by using FreshBooks

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Save up to R5000 in billable hours every year

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People in over 160 countries have used FreshBooks

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