VAT: The Difference Between Standard-Rated, Zero-Rated, and Exempt Supplies
Value-added tax (VAT) is one of South Africa’s most significant indirect taxes, affecting businesses and consumers alike. However, while most people know that the standard VAT rate is 15%, fewer understand that not all goods and services are treated the same for VAT purposes. The Value-Added Tax Act 89 of 1991 (as amended) divides supplies […]
VAT: The difference between standard-rated, zero-rated and exempt supplies
There are three categories of supplies that can be made by a VAT vendor: standard-rated, zero-rated and exempt supplies. Output tax must be levied on all supplies except exempt supplies. The VAT Act gives specific guidelines for zero-rated and exempt supplies but these fall outside the scope of this article. Please contact your tax practitioner […]