Add or remove VAT in a click with our online South African VAT calculator. Simply enter the price and click the button. The current SA VAT rate is 15%.
Free South African VAT Calculator – Adding and Removing VAT Calculations
Add / Include VAT Calculator
Adding VAT means including the Value Added Tax (VAT) to the original price of a product or service. VAT is a tax added at different stages of the supply chain and is ultimately paid by the end consumer
Remove/ Exclude VAT Calculator
Removing VAT involves deducting the VAT amount from the total price of a product or service. This is done by subtracting/minus the VAT from the total. It helps to determine the base price of an item before VAT is added. Removing VAT helps to understand the actual cost of the product or service by excluding the tax component
VAT Inclusive Vs Reverse VAT Calculator
Let’s take a closer look at the examples: VAT, which stands for Value Added Tax, is a type of consumption tax that is applied to goods and services at various stages of production or distribution. Calculating the VAT amount can be done using two different approaches: the VAT inclusive formula and the VAT exclusive formula.
How to Calculate VAT Inclusive using the formula?
Tax Amount = ( Original Cost * VAT% ) / 100
Net Price = Original Cost + Tax Amount
How to Calculate VAT Exclusive using the formula?
Tax Amount = Original Cost – ( Original Cost * ( 100 / ( 100 + VAT% ) ) )
Net Price = Original Cost – Tax Amount
Understanding and correctly utilizing these formulas is crucial for both businesses and consumers. By knowing whether the VAT is already included in the price or not, one can accurately calculate the VAT amount and determine the total price. Proper VAT calculation ensures compliance with tax regulations and promotes transparency in financial transactions.
How to Calculate VAT Manually, you need to follow these steps:
Step 1: Determine the VAT Rate Identify the VAT rate applicable to the goods or services you are selling. For example, if the standard VAT rate is 20%, you will use this percentage in your calculations.
Step 2: Calculate the Net Price The net price is the original selling price of the goods or services before VAT is added. If the net price of a product is R100, proceed to the next step.
Step 3: Calculate VAT Amount Multiply the net price by the VAT rate. Using the previous example, R100 multiplied by 20% (0.20) gives you R20. This R20 represents the VAT amount.
Step 4: Calculate Gross Price Add the VAT amount to the net price to get the gross price, which includes the VAT. In our example, R100 + R20 = R120. Therefore, the gross price is R120.
Let’s illustrate the calculation with an example. Suppose you own a small business selling handmade jewelry. You sell a necklace for R50, and the VAT rate applicable to jewelry is 10%.
Step 1: Determine the VAT Rate: 10%
Step 2: Calculate the Net Price: R50
Step 3: Calculate VAT Amount: R50 x 10% = R5 Step 4: Calculate Gross Price: R50 + R5 = R55
So, the gross price of the necklace, including VAT, is R55.
You must use only our Online SA VAT Calculator instead of performing manual calculations
Frequently Asked Questions
In conclusion, the South African VAT calculator is an essential tool for businesses and individuals alike in South Africa. With its ability to accurately compute VAT amounts and prices at different stages of the supply chain, this calculator simplifies the complex process of VAT calculation. It takes into account various factors such as the VAT rate, sales of goods and services, imports, purchases, and more. Whether you are a business owner, a consumer, or an importer/exporter, this calculator provides a reliable solution for determining VAT liability, removing VAT from amounts, and calculating pre-VAT prices. It ensures compliance with the VAT Act and helps avoid penalties, interest, and other financial liabilities.