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Thread: VAT on certain farming sales

  1. #1
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    VAT on certain farming sales

    Hi

    Can anyone please advise whether VAT will be applicable or zero-rated on the sale of the following by a farmer:
    - sunflowers
    - beans
    - wheat
    - yellow mealies

    Thank you

  2. #2
    Platinum Member Mike C's Avatar
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    Taken from the SARS VAT guide for vendors.

    6.3.1 Certain basic foodstuffs
    Certain basic foodstuffs are zero-rated, provided it is not supplied for immediate consumption (that is, as a meal or refreshment) or added to a standard-rated supply.
    These include the following:
    brown bread
    dried mealies and mealie rice
    brown bread flour (excluding wheaten bran)
    samp
    hens eggs (that is, not from ostriches, ducks etc.)
    fresh fruit and vegetables
    dried beans
    lentils
    maize meal
    rice
    pilchards in tins or cans
    vegetable cooking oil (excluding olive oil)
    milk, cultured milk, milk powder and dairy powder blend
    edible legumes and pulses of leguminous plants (that is, peas, beans, peanuts etc.)
    The zero rate will not apply where
    Zero-rated foodstuffs are prepared for immediate consumption, for example
    o a glass of milk served in a restaurant;
    o salad or fruit salad which is ready to eat; and
    o sandwiches and other take-away foods.
    A standard rated product or ingredient is supplied together with a zero-rated foodstuff, for example
    o a pack of vegetables containing a pack of flavoured butter;
    o a pack of rice or beans containing a sachet of flavouring;
    o a gift hamper consisting of a basket of fruit;
    o flavoured cooking oil; and
    o a pack of salad to which salad dressing has been added.

    Hope this helps.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Thanks Mike.

    I also saw this section, but as is usually the norm with SARS when you need info, nowhere does it specifically mention e.g. wheat or sunflowers

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    Hi Keitht
    You will find the complete list in Schedule 2 of the Act
    I can't think of any unprocessed produce that is not zero rated, and a good many are still zero rated up to certain stages of processing.

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