Calculate and extract Value Added Tax from net or gross amounts. Includes statutory presets for Zimbabwe (15%), South Africa (15%), Kenya (16%), and custom rates.
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A consulting company issues a bill for $1,000 net in Zimbabwe or South Africa (15% standard rate).
The total bill amount is $1,150.00, with $150.00 in remittable VAT.
VAT exclusive means the price shown does NOT include tax; VAT must be added on top. VAT inclusive means the displayed price ALREADY includes tax.
Divide the gross price by (1 + tax rate). For example, with 15% VAT, divide by 1.15 to obtain the net price, or multiply by (0.15 / 1.15) to isolate the tax portion directly.
Zero-rated supplies (such as staple food items and export commodities) carry a 0% tax rate, allowing registered vendors to reclaim input VAT paid on operational purchases. Exempt supplies (such as residential accommodation or life insurance) carry no tax, but vendors cannot claim back any input VAT incurred.
Output VAT is the tax you collect from your clients on goods and services sold. Input VAT is the tax you pay to your suppliers for business purchases. On your tax return, you remit net tax (Output VAT minus Input VAT) to the revenue authority.