A fairly wide range of basic foodstuffs together with diesel, petrol and illuminating paraffin are zero-rated as distinct from exempt. Certain supplies are exempt from VAT. … Most notable amongst these is rental of residential property.
Is there VAT on fuel in South Africa?
The following goods and services are zero-rated: … Goods which are subject to the fuel levy (petrol and diesel)
Is fuel zero-rated or exempt in South Africa?
Most of the items refer to exports and international transport, but other specified goods utilised for farming purposes, the sale of an enterprise as a going concern, certain basic foodstuffs, fuel subject to the fuel levy, and deemed supplies by welfare organisations are also zero-rated.
Is oil VAT exempt?
VAT is levied on the importation of goods, subject to certain exceptions, such as the exemption from VAT of imported petroleum oil and crude oil imported for the purposes of being refined.
What items is VAT not charged on?
vegetable oil. mealie rice. pilchards in tins. edible legumes and pulses of leguminous plants.
Can you claim VAT on electricity South Africa?
Vendors making zero-rated supplies are entitled to full input VAT credits on costs incurred to make such supplies (in other words, they can claim the VAT paid on expenses such as stock, water and electricity back from Sars).
Is there VAT on electricity South Africa?
Charges for municipal rates are subject to VAT at the zero rate, but the zero rate does not apply when there is no separate charge for goods or services such as water and electricity. are not a supply in the traditional sense but are viewed as supply for VAT purposes.
What is the difference between zero rated and exempt VAT in South Africa?
The main difference between zero rate and exempt supplies is that the suppliers of zero-rated goods and / or services can still reclaim all their input VAT, but the suppliers of exempt goods are either not registered for VAT or if they are, they cannot reclaim their input VAT.
Is fuel exempt or zero rated?
A fairly wide range of basic foodstuffs together with diesel, petrol and illuminating paraffin are zero-rated as distinct from exempt. This means that the customer pays no VAT, but the supplier can, if VAT registered, claim input VAT because they are making VATable supplies (albeit at a rate of zero).
What products are tax exempt?
Some items are exempt from sales and use tax, including:
- Sales of certain food products for human consumption (many groceries)
- Sales to the U.S. Government.
- Sales of prescription medicine and certain medical devices.
- Sales of items paid for with food stamps.
What services are VAT exempt?
There are some goods and services on which VAT is not charged, including:
- insurance, finance and credit.
- education and training.
- fundraising events by charities.
- subscriptions to membership organisations.
- selling, leasing and letting of commercial land and buildings – this exemption can be waived.
Is Bread VAT exempt?
The VAT Act contains a list of 19 food items that qualify for the zero rating. These include, amongst others, items such as fresh fruit and vegetables, brown bread, milk and eggs.
What can you claim VAT on South Africa?
When you sell products or services under the standard (15%) or zero rate (0%), you can claim Input VAT.
VAT Exempt Items in South Africa
- Residential rental accommodation.
- Public road and rail transport.
- Educational services provided by an approved educational institute.
- Non-fee related financial services, like interest.
What is the difference between exempt and zero rated VAT?
Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. … Exempt items are goods on which no VAT is paid or charged, but which still need to be recorded on the VAT Return.
Is milk VAT exempt or zero rated?
Standard or zero rated
Standard rated goods have the standard rate of VAT added to the selling price while zero rated goods do not have any VAT added to the selling price. Zero rated items include most of the goods you will sell, such as: milk and dairy products. eggs, potatoes, bread and other food items.