Results 1 to 5 of 5

Thread: Zero rate VAT supplies and Input VAT claims

  1. #1
    New Member
    Join Date
    Apr 2016
    Location
    Centurion
    Posts
    1
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Zero rate VAT supplies and Input VAT claims

    We have a chicken farm whose main business is the selling of eggs that is charged at zero rate VAT. Occasionally we sell live chickens that are vatable. Are we allowed to claim VAT on our expenses. If we claim VAT on our expenses it will mean that SARS will have to repay us the VAT for all the periods submitted?

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Hi. You have to apportion it. Get hold of a VAT 404 brochure and look at section 8.

    In a nutshell, apply the percentage turnover to the input VAT. In other words the chicken turnover as a % of total turnover x the total input VAT.

  3. #3
    Silver Member Christel's Avatar
    Join Date
    Feb 2012
    Location
    Port Elizabeth
    Posts
    360
    Thanks
    57
    Thanked 96 Times in 68 Posts
    Hi. Yes you are definitely able to claim ALL expenses relating to the farm back. You do not have to proportion anything as chickens are used to produce eggs! Eggs are zero rated, so you will have a claim basically every month. Just make sure all your invoices are correct as per the SARS rules as they will certainly do a review basically every month.
    Hope you are registered for Diesel rebate too? If not, register, then at least you can get the diesel used on the farm back as well.
    always fear when Christel is near....

  4. #4
    Silver Member
    Join Date
    Sep 2012
    Location
    Louis Trichardt
    Posts
    334
    Thanks
    58
    Thanked 43 Times in 39 Posts
    I agree with Christel. Had you other income been exempt, it would be a different story, but as zero rated supplies are seen as taxable supplies, you are allowed to claim input tax on expenses incurred to produce the eggs too.

  5. #5
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    713
    Thanks
    74
    Thanked 199 Times in 178 Posts
    Christel is totally correct. I was confusing exempt with zero rated.

Similar Threads

  1. KA testing on UPS Supplies
    By RegElec in forum Electrical Contracting Industry Forum
    Replies: 2
    Last Post: 22-Jul-14, 06:33 AM
  2. Input Tax claims for private school
    By Mel123 in forum Tax Forum
    Replies: 0
    Last Post: 13-Aug-13, 01:47 PM
  3. [Question] Compliance certificate and multiple supplies
    By christopher john in forum Electrical Contracting Industry Forum
    Replies: 8
    Last Post: 25-Jan-13, 07:57 AM
  4. Fuel supplies fragile
    By Dave A in forum General Business Forum
    Replies: 0
    Last Post: 27-Apr-08, 01:54 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •