A VAT vendor advertising or quoting a price to the public must state a price that includes VAT. Showing an amount excluding VAT and adding it at the till is a problem under the VAT Act, and under the Consumer Protection Act the displayed price is what the consumer is entitled to pay. Business-to-business quoting is different in practice — but the rule turns on who your customer is, not on which is more convenient.
The "+ VAT" habit is so common in South African quoting that people assume it is always fine. It is fine in some contexts and not in others.
What the rule actually is
A price advertised or quoted by a vendor must include VAT, and where a price is stated the vendor must make clear that it includes VAT.
The Consumer Protection Act adds a second layer: a supplier must not charge a consumer more than the displayed price, and where two prices are displayed the consumer is generally entitled to the lower one.
Put together, the practical position for consumer-facing pricing is simple: the number on the shelf, the website or the menu is the number the customer pays.
Confirm the current requirements before changing your pricing displays. The VAT Act provisions on price advertising and the Consumer Protection Act rules on displayed prices are detailed, and this article is a summary rather than a legal opinion.
Consumer-facing versus business-to-business
This is the distinction that resolves most of the confusion.
| Selling to consumers | Selling to businesses | |
|---|---|---|
| Advertised or displayed price | Must include VAT | The convention is to quote excluding VAT |
| What the customer cares about | The total they pay | The excluding-VAT cost, because they claim the VAT back |
| Risk of quoting "+ VAT" | Real | Low, where the customer is a vendor and it is clearly stated |
Why the B2B convention exists: a registered vendor claims the input VAT back, so the VAT is not a cost to them. Quoting excluding VAT tells them the number that actually matters.
But be explicit. A quotation that says "R80,000" without saying whether VAT is included is an argument waiting to happen, and where the customer turns out not to be VAT registered, an expensive one.
Where you sell to both, the safe approach is to show both figures — the excluding, the VAT, and the total — on every quotation, and to display VAT-inclusive prices anywhere the public can see them.
What must a quotation or invoice show?
A quotation is not a tax invoice, and the two get conflated.
On a quotation, state clearly:
The amount excluding VAT
The VAT amount
The total including VAT
Whether the price is valid for a period
On a tax invoice, the requirements are prescribed and stricter — including the words "tax invoice", both parties' details, your VAT number, and the VAT amount or a statement that it is included. Get this wrong and your customer cannot claim the input VAT, which is a commercial problem as well as a compliance one. See what makes a valid tax invoice.
The situations that catch people
You are not registered for VAT
Then you may not charge VAT, quote VAT, or show VAT on anything.
Charging VAT without being registered is a serious matter — you are collecting a tax you have no authority to collect.
Your prices are simply your prices. Do not write "+ VAT" and do not put a VAT line on an invoice.
And do not display a VAT number you do not have. See the VAT registration threshold.
Your registration is still in process
The awkward gap. You are liable from the date you crossed the threshold, but you have no VAT number yet and cannot issue a valid tax invoice.
The workable approach is to invoice the VAT-inclusive amount without describing it as VAT or issuing a tax invoice, then reissue proper tax invoices once your number and effective date are confirmed.
Tell customers up front. B2B customers need the reissued invoice to claim their input VAT, and they are far more accommodating when warned.
You register and your consumer prices are now VAT-inclusive
A real commercial moment. A business that was charging R500 and is now registered either absorbs the VAT — dropping to roughly R435 excluding — or raises the price to R575.
Neither is comfortable, and the decision is a pricing decision, not an accounting one. Model it before the registration takes effect rather than after. See is voluntary VAT registration worth it.
You deregister
Stop charging VAT from the effective date, remove VAT references from invoices and price lists, and remember there is an exit charge on assets and stock on hand. See should you deregister for VAT.
Practical rules that keep you out of trouble
Display VAT-inclusive prices anywhere the public can see them — shelf, website, menu, price list, advertisement.
On quotations, show all three numbers. Excluding, VAT, total. It removes every ambiguity for the cost of one extra line.
Never quote a bare number. "R80,000" with no VAT statement is the single most common cause of a payment dispute.
Say "VAT incl." where you show an inclusive price, so it is clear rather than merely correct.
Honour the displayed price. Where a price is wrong on the shelf, the consumer position is protected — fix the display, do not argue at the till.
Review price displays when your VAT status changes. Registration and deregistration both require going through every place a price appears.
Frequently asked questions
Do advertised prices have to include VAT in South Africa? Yes, where you are a VAT vendor advertising or quoting to the public. The price stated must include VAT, and the vendor must make clear that it does.
Can I quote excluding VAT to business customers? It is the common convention, because a registered customer claims the VAT back and cares about the excluding-VAT cost. State it explicitly — a quotation that does not say whether VAT is included invites a dispute.
What if my displayed price is wrong? Under the Consumer Protection Act a supplier generally may not charge more than the displayed price, and where two prices are displayed the consumer is generally entitled to the lower. Fix the display rather than arguing at the till.
Can I charge VAT if I am not registered? No. Charging VAT without being registered means collecting a tax you have no authority to collect. Your prices are simply your prices, with no VAT line and no VAT number shown.
What do I do while my VAT registration is being processed? Invoice the VAT-inclusive amount without describing it as VAT or issuing a tax invoice, then reissue proper tax invoices once your number and effective date are confirmed. Warn business customers, because they need the reissued invoice.
What happens to my prices when I register for VAT? Either you absorb the VAT and your net income falls, or you raise the price and the customer pays more. It is a pricing decision, and it should be modelled before registration takes effect.
What must a quotation show? The amount excluding VAT, the VAT amount, the total including VAT, and the validity period. A quotation is not a tax invoice and does not need to meet the tax invoice requirements.
Do I need to say "VAT included"? Where you show a VAT-inclusive price, making that clear is part of the requirement — and it prevents the customer assuming VAT will be added later.
Show all three numbers and the argument disappears
Almost every VAT pricing dispute traces back to a quotation with one number on it. Excluding, VAT, total — three lines instead of one, and nobody is ever surprised at invoice stage.
Smartbook handles VAT registration, sets up invoice and quotation templates that meet the requirements, and models what registration will do to your prices before it takes effect.
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Last reviewed: 28 August 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. The VAT Act provisions on price advertising and the Consumer Protection Act rules on displayed prices are detailed — confirm the current requirements before changing your pricing displays. General guidance, not legal advice.
Primary sources: SARS — Value-Added Tax · Value-Added Tax Act 89 of 1991 · Consumer Protection Act 68 of 2008 · National Consumer Commission