Hi there.

QUESTION 1: If I'm buying from a supplier who is not VAT registered. If I am thinking about my Tax Report at the end of the month, which of the below Tax Codes is "the most correct" to use when making a PO?
  • Tax Type 0
  • Zero Rated (0%)
  • Exempt Rated (0%)
  • Standard Rated (15%) ..obviously not


QUESTION 2: Is there ever a time I should use Type 0?


Zero-Rated VAT in South Africa
- 19 basic food items, like milk and brown bread
- Petrol and diesel
- Paraffin
- Certain government grants
- Sale of a going concern (property or business that is still trading)
- Export of goods
- International transport of goods and passengers (Interestingly, this includes the cost of trucking goods from JNB to DUR if they are say enroute to Germany)
- Certain services supplied to non-residents
- Services physically rendered outside South Africa

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
Thanks again
Michelle