[Question] VAT on certain farming sales

[keitht]

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

[Mike C]

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.

[keitht]

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

[CLIVE-TRIANGLE]

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.