How to Calculate VAT

Did you find this page, how to calculate VAT,  helpful.

Contact us for a quotation to assist with your monthly VAT processing and end of year annual financial statements.



How to calculate vat for a return to be submitted to South African Revenue Services is a frequently asked question.  We decided to provide you with some quick pointers about what to look out for while processing your monthly financial information as well as completing the vat201 return.

For a vat registration - click here for more information

First and most important...make sure the invoices from your suppliers are correct.  You can visit this page to read about all the important requirements of a valid tax invoice.

You will only be able to claim value added tax if all requirement are met.

It is a requirement from South African Revenue Services to declare income in the month you issue an invoice.  In other word value added tax need to be paid over on all invoices whether accounts have been paid or not.  You will also be able to claim on an invoice of a creditor before you actually pay it.

When completing the vat201,  you need to separately declare capital sales and purchases.  You would also need to declare any customs vat on the return.

For more information about how to calculate vat .... visit some of our other value added tax pages.

For a vat registration - click here for more information

Read all about the factors that need to be considered and taken into account when you register an entity for value added tax.

To learn more about a vat deregistration -  click here for more information

Read all about the important aspect to keep in mind when deregister an entity for value added tax.

For an example of a valid tax invoice - click here for more information

It is very important to issue a correct tax invoice to your clients and just as important when you receive an tax invoice from your suppliers.




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