Page 51 - P6 Slide Taxation - Lecture Day 5 - VAT Part 1

Zero-rated supply: other

 Supply of goods and services for use for agricultural or

other farming purposes (s 11(1)(g))

 Example: seed, feed, fertiliser, etc.

 Supply of gold coins issued by the Reserve Bank (s 11(1)(k))

 Example: Kruger Rands

 Certain basic foodstuffs (s 11(1)(j))

 Example: brown bread, maize meal, samp, mealie rice, rice, pilchards,

milk and milk powder, fresh fruit and vegetables (including mealies,

but excluding popcorn), vegetable oil (excluding olive oil), eggs and
lentils

 The supply of fuel levy goods (ss 11(1)(h))

 Example: petrol and diesel

 Charging of municipal rates by municipality (ss 11(1)(w))

 Property rates and taxes @0%

 Water, electricity, refuse removal @ 15%

 If charged @ flat rate – not zero rated