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
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
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.
No act of kindness, no matter how small, is ever wasted. - Aesop "The Lion and the Mouse"
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
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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