TAXABLE SUPPLIES
NOTE: If any transaction takes place before 1 APRIL 2018 the VAT rate is at 14%!!! Any point after is at 15%
* If an item is purchased for business and personal use the VAT input claimed by the entity must be
proportionate to the percentage of the entity's use
*If an asset is purchased to make taxable and non-taxable supplies then VAT input is levied at the
NON-taxable %
* If the entity produces taxable and exempt supplies then levy input tax at the Commissioner ratio
(check that the asset is not going to be used by the entity for something completely taxable)
EXEMPT SUPPLIES STANDARD SUPPLIES ZERO - RATED SUPPLIES
1. The supply of goods or services in These are charged at 0% VAT, this
1. Financial services SA by a vendor in the course of enables the vendor to claim back all
* any exchange of currency furtherance of an enterprise carried the input tax in connection with the
* any issue,payment, collection or on by them. zero-rate supply.
transfer of ownership of a cheque or * not money, revenue, stamps or * Brown bread and white bread
letter of credit. certain rights off transaction. wheat flour
*any issue of debt 2. Imports where VAT is 15% * Certain maize products
* any issue or transfer of ownership * BOTSWANA (excl. popcorn)
of a share or members interest. * LESOTHO * Rice, pilchards, milk & milk powder
* any provision of credit and paying *NAMIBIA * fresh fruit and veg. , eggs, lentils
of interest. * SWAZILAND * cake wheat flour
* provision/ transfer of a long term 3. Imports from other countries 2. Fuel, petrol & iluminating paraffin
insurance policy VAT = (1.1 customs duty value + 3. Exports
* buying or selling of a derivative customs duty paid) x 15% * If ownership changes once the
instrument 4. Internet banking fees / Bank charges goods are outside of South Africa,
2. Fare - paying travel by road or rail 5. Service fees the export is a direct export. (0%)
in SA 6. Transaction costs *If ownership changes in South
3. Transport in an ambulance 7. Administration costs Africa,the export is an indirect
4. Residential accomodation 8. Cost for a cheque book export. (15%)
5. Donations 9.Travel via game vehicle or hearse 4. Sale of entity as a going concern
6. Qualifying education services 10. Buying a bus to transport staff to * Will continue to be an income
7.schooling, tuition, Board and work for free - earning activity on date of transfer.
lodging provided by an educator 11. Commercial accomodation * all assets necessary for carrying
8.Membership to trade unions 12. Insurance & Maint. on a motor car on the entity are disposed of.
9. Childcare services 13. Water & Electricity * both parties agree in writing the
14. Insurance payout received consideration is incl. of VAT at a
constitutes OUTPUT Tax when: rate of 0% and are registered for VAT.
* The payout is in the form of money *total value of taxable supplies
and not goods made by the supplier of the going
* Asset being replaced isn't denied VAT concern must have exceeded
* Or the payment is made for repair R50 000 over a period of 12 months
* If the insurance provider physically 5. Air flight travel outside of SA
replaces the goods no OUTPUT VAT, 6. Rates and taxes
however the entity can claim input
tax on the items replaced.
15. Insurance premiums
NOTE: If any transaction takes place before 1 APRIL 2018 the VAT rate is at 14%!!! Any point after is at 15%
* If an item is purchased for business and personal use the VAT input claimed by the entity must be
proportionate to the percentage of the entity's use
*If an asset is purchased to make taxable and non-taxable supplies then VAT input is levied at the
NON-taxable %
* If the entity produces taxable and exempt supplies then levy input tax at the Commissioner ratio
(check that the asset is not going to be used by the entity for something completely taxable)
EXEMPT SUPPLIES STANDARD SUPPLIES ZERO - RATED SUPPLIES
1. The supply of goods or services in These are charged at 0% VAT, this
1. Financial services SA by a vendor in the course of enables the vendor to claim back all
* any exchange of currency furtherance of an enterprise carried the input tax in connection with the
* any issue,payment, collection or on by them. zero-rate supply.
transfer of ownership of a cheque or * not money, revenue, stamps or * Brown bread and white bread
letter of credit. certain rights off transaction. wheat flour
*any issue of debt 2. Imports where VAT is 15% * Certain maize products
* any issue or transfer of ownership * BOTSWANA (excl. popcorn)
of a share or members interest. * LESOTHO * Rice, pilchards, milk & milk powder
* any provision of credit and paying *NAMIBIA * fresh fruit and veg. , eggs, lentils
of interest. * SWAZILAND * cake wheat flour
* provision/ transfer of a long term 3. Imports from other countries 2. Fuel, petrol & iluminating paraffin
insurance policy VAT = (1.1 customs duty value + 3. Exports
* buying or selling of a derivative customs duty paid) x 15% * If ownership changes once the
instrument 4. Internet banking fees / Bank charges goods are outside of South Africa,
2. Fare - paying travel by road or rail 5. Service fees the export is a direct export. (0%)
in SA 6. Transaction costs *If ownership changes in South
3. Transport in an ambulance 7. Administration costs Africa,the export is an indirect
4. Residential accomodation 8. Cost for a cheque book export. (15%)
5. Donations 9.Travel via game vehicle or hearse 4. Sale of entity as a going concern
6. Qualifying education services 10. Buying a bus to transport staff to * Will continue to be an income
7.schooling, tuition, Board and work for free - earning activity on date of transfer.
lodging provided by an educator 11. Commercial accomodation * all assets necessary for carrying
8.Membership to trade unions 12. Insurance & Maint. on a motor car on the entity are disposed of.
9. Childcare services 13. Water & Electricity * both parties agree in writing the
14. Insurance payout received consideration is incl. of VAT at a
constitutes OUTPUT Tax when: rate of 0% and are registered for VAT.
* The payout is in the form of money *total value of taxable supplies
and not goods made by the supplier of the going
* Asset being replaced isn't denied VAT concern must have exceeded
* Or the payment is made for repair R50 000 over a period of 12 months
* If the insurance provider physically 5. Air flight travel outside of SA
replaces the goods no OUTPUT VAT, 6. Rates and taxes
however the entity can claim input
tax on the items replaced.
15. Insurance premiums
