Value-Added Tax (VAT) basics - South Africa 2018

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Any and all entrepreneurs should at least know the basics of VAT. This video is an introduction to VAT.

Any person (natural person or juristic person) that make taxable supplies of more then R50 000 in a consecutive 12 month period can voluntarily register as a VAT Vendor.

Any person who makes taxable supplies exceeding R 1 million in a consecutive 12 month period, MUST register for VAT.

List of Zero rated (as per section 11 of the VAT Act) (list is not necessarily all inclusive) (conditions apply):
1. brown bread
2. dried mealies and mealie rice
3. brown bread flour (excluding wheaten bran)
4. samp
5. hens eggs56 (that is, not from ostriches, ducks etc)
6. vegetables57 and fresh fruit
7. dried beans
8. lentils
9.• maize meal
10. rice
11. pilchards in tins or cans
12. vegetable cooking oil (excluding olive oil)58
13. milk, cultured milk, milk powder and dairy powder blend
14. edible legumes and pulses of leguminous plants (that is, peas, beans, peanuts etc)
15. Fuel levy goods
16. Going concern (if a going concern is sold)
17. Services relating to intellectual property rights
18. Payments made by public authorities and municipalities to welfare organisations
19. Foreign donor funded project
20. Vocational training of employees
21. Goods temporarily imported for repairs
22. International transport
23. Any service supplied directly in connection with land situated outside the RSA
24. Services physically performed outside the Republic
25. Certain services supplied to non-residents
26. Municipal property rates
27. Farming goods

Recently added items (as per Mini budget 2018):
28. White bread flour
29. Cake flour
30. Sanitary pads


List of exempt supplies (as per section 12 of the VAT Act) (again, not all inclusive) (conditions apply):
1. Financial Services
2. donated goods or services sold by non-profit bodies
3. residential accommodation in a dwelling
4. passenger transport in South Africa by taxi, bus or train
5. educational services provided by recognised educational institutions
6. childcare services
7. services provided to members of body corporates, etc
8. Fixed property situated outside the Republic



I am Jacques P. Taljaard (BAP(SA)) (GTP(SA)), an accountant and tax practitioner in South Africa.

There's very little information available to the general public of South Africa that assists new entrepreneurs in setting up a business. With this channel I aim to change that.

#WhyZAisCool #AskAnAccountant #SouthAfrica #2018

Get in contact: www.pretera.co.za

Disclaimer Nothing in this channel can be considered "advice" in any form, and neither Jacques P. Taljaard nor Pretera Accounting Services can be held liable for any claim resulting from the information in this video. Since circumstances often differ vastly, should you need advice we recommend getting in touch with a professional service provider.