South African VAT Calculator

VAT Calculator

Value-added tax (VAT). VAT Calculator South Africa. The Standard VAT Rate In South Africa Is 15% And the reduced VAT Rate is 5%. Here you can calculate your Add VAT And Remove VAT quickly and accurately. If you are from Africa then simply put your total amount in specific input which we given our advanced VAT Tool will then calculate your TAX quickly. We have multiple great features both Including VAT And Excluding VAT Result will be shown to you without any calculation button just enter the amount. Also if you want to clear and copy your total tax and the amount that you are given simply click on the copy and clear buttons. In the optional result, we have shown a 5% reduced VAT Rate result too for the same amount that you give for the 15% VAT Rate.

Value-added tax

Value-added tax (VAT) is a broad tax levied by sellers on the sale of goods and services and collected at the time of purchase. VAT is payable regardless of whether it is a fixed asset or stock, provided that the seller uses the goods in his business. A business is required to register for VAT exemption if the value of taxable product sales in 12 months exceeds, or is expected to exceed, R1 million. VAT Calculator SA VAT in South Africa is currently 15% from 1 April 2018. General sales tax (VAT) was first introduced in South Africa on 29 September 1991 at a rate of 10%. In 1993, VAT was raised to 14%, and in the February 2018 budget speech to 15%. If VAT is not included in the price of the product charged by the seller, the price includes VAT. Value Added Tax (VAT) in South Africa is set at 14% and has not changed since 1993. On February 21, 2018, Finance Minister Malusi Gigaba announced that the VAT rate would be increased by one percentage point to 15%. Some basic food products, as well as paraffin, remain below the zero key. The new measure will enter into force on April 1, 2018. In the 2017/18 financial year, around 56% of the 773,783 registered VAT providers were active and 35.5% of VAT suppliers had a turnover of less than R1 million. Individuals who hold a non-South African passport and are not resident in South Africa are entitled to claim a VAT refund on movable property purchased in the country, provided they can produce a tax invoice (such as a receipt) for the goods. When goods are imported, an ad valorem tax is levied on the value of the goods. VAT is then applied to the total price of the goods and VAT. Certain goods and services are zero-rated, including exports, staple foods, petrol and diesel, and agricultural inputs. The zero classification of these products and services is subject to an annual review. Certain categories of goods and services are exempt from VAT, including educational services and public transport. It is unlikely that these categories will be revised.

Taxation in South Africa

Taxation can involve payments to at least two different levels of government: central government through SARS or local government. Until 2001, South Africa's tax system was source-based: income was taxed in its country of origin. From January 2001, the tax system was changed to a "residence-based" one, whereby taxpayers resident in South Africa are taxed on their income, regardless of its source. Non-residents are only subject to internal taxation. The central government's revenues come primarily from income tax, general sales tax (VAT), and corporate tax. Local government income comes mainly from grants from central government sources and council interest. In the 2018/19 financial year, SARS collected tax revenue of R1,287.7 billion equivalent to US$86.4 billion, an increase of R71.2 billion (5.8%) over the previous financial year. In the 2018/19 financial year, South Africa's tax-to-GDP ratio was 26.2%, only slightly higher than 25.9% in 2017/18. The cost of collecting tax revenues remained somewhat unchanged; decreased slightly from 0.93% of total revenue in 2016/17 to 0.89% in 2017/18, while in the 2018/19 financial year revenue collection costs further improved, reaching 0.84% decreased. Three South African provinces accounted for 77.8% of total tax revenue: Gauteng 49.0%, Western Cape 15.5% and KwaZulu-Natal 13.3%. The Northern Cape had the smallest contribution 1.3%, followed by the Free State (3.2%) and the North West 3.3%.

The South African Revenue Service (SARS) is responsible for the collection of taxes in the Republic of South Africa. The mandate and vision of the South African Revenue Service, as quoted from their website, is as follows: Collect all your debts. Ensure optimal compliance with tax, customs, and excise legislation. Provide customs and excise services that facilitate legitimate trade and protect our economy and society. The driving force behind SARS is the desire to contribute directly to the economic and social development of the country by generating revenue that will enable the government to fulfill its constitutional obligations, policies, and priorities as set out in the directive. a better life for everyone in South Africa. By promoting tax and customs legislation, we are also trying to contribute to the development of financial citizenship that reflects a law-abiding society. The fulfillment of this mandate by SARS is based on higher goals and values that guide the behavior of SARS employees. Direct taxes are taxes levied on individuals, trusts, estates, corporations, and closely related businesses; hereinafter referred to as individuals. The carrier collects indirect taxes from the intermediary. the final economic burden of the tax. The intermediary then prepares the tax return and remits the tax proceeds to the government. Of the R216 billion collected by SARS in 2017/2018, 93% (or R133 billion) came from both taxes. Personal and corporate income taxes and taxes on domestic goods and services are a combination of direct and indirect taxes.

Anyone who earns income in South Africa must register for tax purposes, and if an employee of a company doing business in South Africa is registered with SARS for tax purposes, the company must register. the employer is suffering from ARVI. In addition, all taxable companies must register their employees with SARS, regardless of their tax status. Personal income tax is the largest source of revenue in South Africa. It accounted for 38.1% of total tax revenue in 2017/18.

The Income Tax Act No. 58 of 1962 defines a corporation under South African law. While nearly 3.7 million companies were registered with the tax authorities in March 2017, in March 2018 there were only 3.1 million. Of these, only 24.2% reported positive taxable income 48.3% reported zero, 27.4% negative taxable income. The purpose of the sales tax is to ease the tax payment and payment obligations of micro-enterprises by reducing paperwork. Sales tax replaces income tax, VAT, withholding tax, capital gains tax, and dividend tax in micro- enterprises with an annual turnover of less than 1 million rubles. Companies paying sales tax will remain in the VAT system. The tax is calculated based on the sales revenue (gross revenue) of the company. Sales tax remained unchanged Budget 2020/21

In the 2017/18 financial year SARS collected R422.2 bn in domestic taxes on goods and services.
Breakdown of Domestic tax revenues on Goods and Services 2017/18
(Type of tax) (Amounts in Rands) (Percentage of total)
(Value-Added Tax (VAT)), (R 298.0 bn), (70.58%)
(Specific excise duties) (R 37.4 bn 8.86%)
(Ad Valorem excise duties) (R 3.8 bn 0.9%)
(Fuel Levy R 70.9 bn 16.79%)
(Environmental taxes) (R 11.2 bn 2.65%)
(Other* R 0.9 bn 0.21%)
(Total) (R 422.2 bn) (100%)

Add VAT

Amount Will be divided by 100 in South Africa VAT Rate is 15%/100 = 0.15. Calculate your VAT Amount Multiple the total amount by the VAT Rate 100 + 15 = 115. Manually calculation will waste your time so the best thing is to calculate your tax amount in our above tool with some great and advanced features like adding VAT and removing VAT at a time.

Remove VAT

Total Amount 1700/115 * 100 Divide your amount by 100 + VAT Percentage. In Africa, the VAT Rate is 15%. Here Divide Amount 100 + 15 = 115. Simple Formula Example Total Amount 1700/115 * 100 = 1478.26.