VAT rates in South Africa
South African VAT is 15%, charged by registered vendors on taxable supplies, with a zero rate for a limited list including basic foodstuffs and exports. That single sentence is the whole rate structure — and it is also the sentence that a great deal of published guidance currently gets wrong.
| Rate | Applies to |
|---|---|
| 15% | Standard rate — supplies of goods and services by registered vendors |
The increase that was announced, published, and then reversed
The 2025 Budget announced that VAT would rise by half a point to 15.5% on 1 May 2025 and to 16% on 1 April 2026. SARS prepared for it properly: it published a pocket guide and an FAQ document, both titled around the increase, and both still sit on the SARS website today.
The increase never happened. On 24 April 2025 the Minister of Finance introduced a Rates Bill proposing to maintain VAT at 15%, and SARS confirmed the reversal, noting in its own words that the increase "is reversed by clause 13 of the Bill introduced on 24 April 2025". A court order the following week settled the remaining dispute.
So there is a live trap: the most prominent VAT-rate documents on the SARS site describe a rate that is not in force. Anyone building a calculator, updating an accounting system or writing a guide from those documents publishes 15.5% or 16%, and is wrong. The rate is 15%, and the tax fraction for extracting it from an inclusive price is 15/115.
A separate change for 2026 is real and easy to miss because it is not about the rate at all. From 1 April 2026 the compulsory VAT registration threshold rises from R1 million to R2.3 million of taxable supplies a year, and the voluntary threshold from R50,000 to R120,000. A large number of small businesses that had to register last year do not have to this year.
Adding VAT
To add VAT to a net (pre-tax) price at the standard rate: gross = net × 1.15. The VAT is 15% of the net amount.
Removing VAT
To find the VAT already inside a gross (VAT-inclusive) price: net = gross ÷ 1.15, then VAT = gross − net. Equivalently, the VAT is 15 ⁄ 115 of the gross — which SARS calls the tax fraction, 15/115.
Frequently asked questions
What is the South Africa VAT rate?
The standard rate is 15%. VAT has been 15% since 1 April 2018. The increases announced for 2025 and 2026 were reversed and did not take effect.
Why is 15% of the gross price the wrong answer?
Because VAT is charged on the net price, not on the total. On a R100 gross amount at 15%, the VAT is R13.04, not R15.00 — the net is R86.96. Use the "Remove VAT" mode above and the calculator does it for you.
Do I have to register for VAT?
Registration is compulsory above R2.3 million of taxable supplies a year from 1 April 2026, up from R1 million. Voluntary registration is available above R120,000, up from R50,000. Check the current thresholds with SARS before acting — these were announced in the 2026 Budget.
More South Africa calculators
This calculator uses VAT rates published by SARS and is for general information only — it is not tax advice. Some supplies are zero-rated or exempt and are not covered here. Rates read from SARS.