South Africa’s standard VAT rate is 15% (since 1 April 2018). The maths is simple once you know which direction you’re going — and there’s one mistake almost everyone makes at least once.
Short on time? Use the free South Africa VAT calculator. It does all three calculations below and shows the working.
Adding VAT (exclusive → inclusive)
Use this when you have a price before VAT, for example when preparing a quote.
Formula: inclusive = exclusive × 1.15
Example: a service costs R2,400 excluding VAT.
- VAT = R2,400 × 0.15 = R360
- Inclusive price = R2,400 × 1.15 = R2,760
Mental shortcut: 15% is 10% plus half of 10%. For R2,400: 10% is R240, half of that is R120, so the VAT is R240 + R120 = R360.
Removing VAT (inclusive → exclusive)
Use this when a price already includes VAT, such as a till slip or a retail price.
Formula: exclusive = inclusive ÷ 1.15
Example: you paid R1,150 including VAT.
- Exclusive amount = R1,150 ÷ 1.15 = R1,000
- VAT included = R1,150 − R1,000 = R150
To find just the VAT portion, use inclusive × 15 ÷ 115. That fraction simplifies to 3/23, which is handy without a calculator: R1,150 ÷ 23 = R50, and × 3 = R150.
Working back from the VAT amount
Sometimes you only know the VAT, for example from a slip that shows only the VAT total.
Formula: exclusive = VAT ÷ 0.15, and inclusive = exclusive + VAT
Example: the VAT was R45.
- Exclusive = R45 ÷ 0.15 = R300
- Inclusive = R300 + R45 = R345
The most common mistake
Taking 15% off an inclusive price:
- Wrong: R1,150 × 0.15 = R172.50
- Right: R1,150 × 15 ÷ 115 = R150
VAT was calculated on the smaller, exclusive amount, so you reverse it by dividing by 1.15. Subtracting 15% removes too much.
Quick reference table
| Exclusive | VAT (15%) | Inclusive |
|---|---|---|
| R100.00 | R15.00 | R115.00 |
| R500.00 | R75.00 | R575.00 |
| R1,000.00 | R150.00 | R1,150.00 |
| R8,695.65 | R1,304.35 | R10,000.00 |
Rounding to the cent
Round the VAT to the nearest cent, then work out the other figure from it so the three numbers add up. Removing VAT from R100:
- VAT = R100 × 15 ÷ 115 = R13.0435… → R13.04
- Exclusive = R100 − R13.04 = R86.96
On invoices with several lines, rounding each line can give a slightly different total from rounding once at the end. Three lines of R33.30 excl. VAT:
- Per line: R33.30 × 0.15 = R4.995 → R5.00, so the VAT adds up to R15.00
- On the total: R99.90 × 0.15 = R14.985 → R14.99
Neither is wrong, but be consistent. Accounting software applies one rule throughout, which is one reason VAT vendors often use it — see accounting tools and invoicing tools.
In a spreadsheet
With the amount in cell A2 and the rate (15) in B2:
| To get | Formula |
|---|---|
| VAT on an exclusive amount | =ROUND(A2*B2/100, 2) |
| Inclusive from exclusive | =A2+ROUND(A2*B2/100, 2) |
| VAT inside an inclusive amount | =ROUND(A2*B2/(100+B2), 2) |
| Exclusive from inclusive | =A2-ROUND(A2*B2/(100+B2), 2) |
| Exclusive from a VAT amount | =ROUND(A2*100/B2, 2) |
Keeping the rate in its own cell means a future rate change is a one-cell edit.
Next steps
- Which figure belongs on your price tags and quotes? See VAT-inclusive vs VAT-exclusive pricing.
- New to VAT? Start with how VAT works in South Africa.
- If you’re a VAT vendor, work out margins on exclusive amounts — the margin calculator helps.
This guide explains arithmetic only and is not tax advice. Tax rates and rules can change. Verify current requirements with SARS or a qualified tax professional.