VAT is a charge added to the purchase price of certain goods and services. It is a form of taxation and the money is paid to the government.
In South Africa, VAT is currently charged at a rate of 15%.
Some goods and services that are regarded as basic necessities are exempted from VAT, e.g. maize meal, hen's eggs, fresh fruit and vegetables, milk, rice, paraffin, petrol, diesel, brown bread etc.
The VAT exclusive amount (VAT excl.) is always equivalent to 100%.
VAT is always equivalent lo 15% of the VAT-exclusive amount.
The VAT inclusive amount (VAT incl.) is always equivalent to 115% of the VAT exclusive amount (i.e. VAT excl. amount of 100% + VAT of 15%).