VAT Calculator 2026 — Add or Remove 15% VAT ☆ Stoor
🎯 Jy het jou syfers gesien — hou nou meer van jou geld
Beantwoord 5 vinnige vrae vir ’n persoonlike plan om belasting te sny, te spaar en jou geld te laat groei.
VAT is 15% — but the registration thresholds changed
The rate itself is unchanged at 15%. What Budget 2026 did change, significantly, is who has to register:
- Compulsory registration: R2.3 million in taxable supplies over 12 months — raised from R1 million. A large number of small businesses that were approaching the old threshold are no longer near it;
- Voluntary registration floor: R120,000 — raised from R50,000.
If you have been planning around the R1 million figure, re-check where you actually stand.
Adding and removing VAT — the error worth avoiding
Adding
Multiply by 1.15. R1,000 excluding VAT becomes R1,150.
Removing
Divide by 1.15. You cannot simply subtract 15% from a VAT-inclusive price:
| Method | On R1,150 inclusive | Correct? |
|---|---|---|
| Divide by 1.15 | R1,000 excl. + R150 VAT | Yes |
| Subtract 15% | R977.50 — wrong by R22.50 | No |
A useful shortcut: the VAT portion of an inclusive price is 15/115 of it, which is about 13.04% — not 15%.
If you are registered: the rule that sinks businesses
The VAT you collect is not your money. You hold it for SARS until your return falls due, and businesses fail on VAT more than on any other tax — almost never through evasion, but because collected VAT gets spent as working capital and the bill arrives regardless.
The fix is mechanical rather than disciplinary:
- Move the VAT portion to a separate account the day it lands, and never treat it as revenue;
- Keep valid tax invoices for everything you buy — input VAT can only be claimed with a compliant invoice, and a missing one is money you simply cannot reclaim;
- Reconcile monthly, not at the deadline;
- Diarise your VAT periods. Most vendors file every two months; late returns attract penalties and interest.
Should you register voluntarily?
Above R120,000 in taxable supplies you may register voluntarily. It is genuinely a trade-off:
For: you can claim input VAT on purchases, which matters if you buy a lot of VAT-able inputs or sell mainly to other VAT vendors (they can claim your VAT back, so your price is effectively the same to them).
Against: real administration, bi-monthly returns, and — if you sell to consumers who cannot claim it back — your prices effectively rise 15% or your margin absorbs it.
Take advice rather than registering by default. And note that not everything carries VAT: certain supplies are zero-rated (including many basic foodstuffs and exports) or exempt (such as most financial services and residential rent) — the distinction matters, because zero-rated supplies allow input claims while exempt ones do not.
Frequently asked questions
Did the VAT rate change in Budget 2026?
No — it remains 15%. The registration thresholds changed: compulsory R1m → R2.3m, voluntary R50,000 → R120,000.
How do I get the VAT out of an inclusive price?
Divide by 1.15, or take 15/115 of the total. Subtracting 15% is the common error and always understates the excluding price.
Do I charge VAT on everything?
No — zero-rated and exempt supplies are treated differently, and the difference affects whether you can claim input VAT. Check the current schedules with SARS for your specific goods or services.
What if I cross R2.3 million mid-year?
Compulsory registration is triggered by taxable supplies over any 12-month period, so monitor it continuously rather than at year end. Register promptly — late registration carries consequences.
Can I claim VAT on a purchase without an invoice?
No. A valid tax invoice with the required particulars is what supports the claim, which is why invoice discipline is worth more than it feels.
Rate is 15%; thresholds are the 2026/27 values (compulsory R2.3 million, voluntary R120,000). Zero-rated and exempt schedules change — confirm with SARS or a registered tax practitioner. General information, not tax advice.