Adding VAT Fee in South Africa

What is the current rate of VAT in South Africa?

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.

How do you add VAT to a price?

This is a very easy Calculation. You need to simply multiply the net amount by 1 + VAT percentage (i.e. multiply by 1.15 if VAT is 15%) and you’ll get the gross amount. Or multiply by VAT percentage to get the VAT value.

What is the formula for calculating VAT in South Africa?

VAT is calculated by multiplying the VAT rate of 15% in South Africa by the total pre-tax cost. The cost of VAT is then added to the purchase.

How does the VAT system work in South Africa?

VAT is an indirect tax that is largely directed at the domestic consumption of goods and services and at goods imported into South Africa. The tax is designed to be paid mainly by the ultimate consumer or purchaser in South Africa. It is levied at two rates, namely a standard rate and a zero rate (0%).

How do I calculate VAT from SARS?

You can calculate the VAT owed to SARS by adding the VAT that you have added to your invoices, and then subtracting the input VAT such as purchases, rent, water, electricity and other costs. The difference in these amounts will then be paid to SARS.

How do I calculate VAT in Excel South Africa?

The formula to calculate VAT using Excel would be =(A1*B1)+A1, giving you the total price including VAT. Following this example, type in =(50*0.21)+50. The final result will be 60.5.

What is the difference between VAT and tax in South Africa?

For instance , in the case of Sales tax;

Sales tax: Only the final consumer pays. While VAT: All purchasers pay VAT; 

However, the economic burden of VAT is on the final consumer as they do not have the right to deduct input VAT.