Based on 2025 South African budget announcements, the standard VAT rate was initially set to increase from 15% to 15.5% on 1 May 2025, and then to 16% on 1 April 2026. Although there was public pressure to cancel these hikes, official SARS communication and legislative proposals as of April 2025 indicated the increases were proceeding, with 15.5% effective from 1 May 2025.
Removing VAT Calculation (Reverse VAT Calculation)
If an amount already has VAT included, you can find the VAT excluded amount by dividing the original amount by 1 + VAT percentage (which is 15% in South Africa). In other words you can find the amount which excludes VAT by dividing the amount that includes VAT by 1.15.
The business subtracts the VAT it paid on its purchases. This is called input VAT. If output VAT is higher, the business sends the difference to the government. If input VAT is higher, the business receives a refund.
A VAT Return is a form you fill in to tell HM Revenue and Customs ( HMRC ) how much VAT you've charged and how much you've paid to other businesses. You usually need to send a VAT Return to HMRC every 3 months. This is known as your 'accounting period'.
As the UK government prepares to deliver its Autumn Statement on 26 November 2025, attention is turning to possible changes in the Value Added Tax (VAT) system. While the Chancellor, Rachel Reeves, has pledged not to raise the standard VAT rate of 20%, this does not mean the VAT landscape will remain static.
The increase was announced in the Minister of Finance's Budget Speech on 12 March 2025. The standard rate of VAT will change from 15% to 15.5% on 1 May 2025 (the effective date) and will continue to apply until the effective date of the second rate increase of 0.5% (bringing the VAT rate to 16%) from 1 April 2026.
If you've charged your customers less VAT than you've paid on your purchases, HM Revenue and Customs ( HMRC ) will usually repay you the difference.
VAT is usually considered to be better than a sales tax because it causes less distortions. VAT only applies to the value added element of transactions, whereas a sales tax applies to the whole amount.
To calculate the amount before VAT, divide the total price (inclusive of VAT) by 1 plus the VAT rate (expressed as a decimal). Then, subtract the VAT amount from the result to obtain the original price.
There is no VAT in the British Virgin Islands. There is no VAT in Brunei. The standard VAT rate is 20%. There is no VAT in the Cayman Islands.
Using invoices, each seller pays VAT on their sales and passes the buyer an invoice that indicates the amount of tax paid excluding deductions (input tax). Buyers who themselves add value and resell the product pay VAT on their own sales (output tax).
VAT stands for 'Value Added Tax'. It is classed as a 'consumption tax' and placed on almost all sales of goods and services. This amount is then passed to HMRC as part of the business' VAT returns.
Adding VAT to the net amount: Multiply the net amount by 1 + the VAT percentage (e.g., multiply by 1.15 for 15% VAT) to find the gross amount. Or, multiply by the VAT percentage to get just the VAT value. If you want to learn more about Saudi VAT or tax, check out Wikipedia.
Value Added Tax (VAT) is a general consumption-based tax (also referred to as a “goods and services tax” or “consumption tax”) charged by a foreign country that is levied on purchases of goods or services within that foreign country. VAT exemption is a customer's ability to complete purchases without paying VAT.
(You are considered an exporting tourist when you purchase goods and take them with you home, therefore becoming eligible for a refund of the VAT that you paid during the purchase.)
VAT (Value Added Tax) is a tax added to most products and services sold by VAT -registered businesses.
The highest standard VAT rate is 27% (in Hungary)[2](https://www.globalvatcompliance.com/globalvatnews/world-countries-vat-rates-2020/).
While businesses charge VAT to their customers, they can also reclaim VAT paid on their purchases. This can be an effective way to reduce a business's running costs and improve cash flow.
The national tax systems of Europe, Canada, Japan and Australia allow most non-resident business entities to claim a refund of VAT. Value Added Tax is called by different terminology in different countries. In Canada, VAT is called GST and in Japan it is JCT [see more under Standard Rates below].
Actual refund is 10–15% of the total price, due to how VAT is calculated and fees. Spend more than €100.01 to qualify for a VAT refund. Validate your tax-free form at customs before departure. Use our VAT refund calculator to see how much you can claim.
When an invoice has multiple lines, VAT is set per invoice line and the total VAT is the sum of each of the VAT lines (rather than VAT being a percentage of the total invoice amount).
Purchase from VAT-Exempt Countries or Sellers
VAT-Free Sellers: Some sellers, particularly large online retailers, offer products without VAT for international buyers. Ensure that the merchant you're purchasing from can provide VAT-free sales and request an invoice excluding VAT.
The EU countries with the highest standard VAT rates are Hungary (27 percent), Finland (25.5 percent) and Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent) and Cyprus, Germany, and Romania (all at 19 percent).