Just type your product’s value into our ingenious Vat Calculator and we will work out the VAT for you!
We also included a duty tax calculation so you can see the total you will pay for your goods.
You can calculate the VAT as follows:
Product price on commercial invoice (e.g. R100) + 10% of commercial invoice (e.g. R10) + duty tax (e.g. if duty tax percentage is 20% then R20 is added) = Total (e.g. R130).
14% VAT is levied on the Total amount. In the above example the VAT will be R130 x 14% = R18.20.
Who needs to pay VAT?
All importers need to pay the full VAT before goods are cleared at customs. If you are a VAT registered entity you can claim the VAT back at a later stage. As you will see from the above calculator VAT is a bit more than 14%.
Exporters do not need to add VAT to their invoice ON CONDITION that the exporter can prove that the exported goods left the country. An effective way of proving this is if the exporter arranges the transport of the goods out of the country. If the buyer arranges the transport out of the country or sends his own vehicle to collect the goods then proof needs to be kept that all the goods left the country; otherwise the buyer may have used or resold some of the goods in South Africa. If an exporter cannot prove that the goods left the country then the exporter may be held liable for the full VAT on the exported goods.
If the exporter cannot prove that the goods left the country then the safest option is to add 14% VAT on the commercial invoice. The buyer can claim the VAT back when the goods leave the country.