VATTally

WORKED EXAMPLE

How to calculate VAT from a total

Updated 21 August 2026 · 3 minute read

When a receipt says “VAT included”, the VAT is not 15% of the receipt total. The total is made up of 100% of the price before VAT plus 15% VAT—115% in all. To isolate VAT, use the VAT fraction.

The VAT fraction at 15%

VAT portion = inclusive total × 15 ÷ 115

To find the price before VAT, divide the inclusive total by 1.15. This gives the same answer without rounding too early.

Example: a total of R2,300

  1. Before VAT: R2,300 ÷ 1.15 = R2,000.
  2. VAT portion: R2,300 − R2,000 = R300.
  3. Check: R2,000 × 15% = R300.

Why “take off 15%” is wrong

Taking 15% of R2,300 gives R345, which is too high. That calculation treats R2,300 as the amount before VAT. The correct VAT fraction recognises that the total already represents 115%.

Tip: keep full precision in your calculation and round monetary results to cents at the end, particularly where several line items are involved.

Use the calculator

Choose “Price includes VAT” in the VATTally calculator, enter the total and it will separate the VAT from the amount before VAT.

The standard VAT rate is 15%. Do not apply this example to a supply that has a different VAT treatment.