Zero-Rated VAT Items in South Africa
The full SARS-aligned list of items that attract 0% VAT in South Africa — covering basic foodstuffs, agricultural inputs, fuel, exports, and international services. 39+ items across 5 categories.
0% VAT (vs standard 15%)
Updated: 2025-12-12
SARS VAT 404 Guide for Vendors (Issue 15, Dec 2024) & VAT Act Schedules
Basic Foodstuffs
Schedule 2, Part B
- Brown bread (including brown rolls and brown buns)
- Brown wheaten meal
- Maize meal
- Samp
- Mealie rice
- Dried mealies
- Dried beans
- Lentils
- Fresh fruit and vegetables
- Canned vegetables (in brine or water only – no added sugar/salt/sauce)
- Fresh or UHT milk (full cream, low fat, fat free – unflavoured)
- Cultured milk (e.g., maas, sour milk)
- Milk powder (unflavoured)
- Brown bread flour (stone-ground or otherwise)
- Eggs (hen's eggs in the shell)
- Edible legumes and pulses of leguminous plants (dried)
- Pilchards/sardinella in tins or cans (whole or pieces, in tomato sauce or brine)
- Rice
- Vegetable cooking oil (excluding olive oil)
- Poultry (chicken, fresh or frozen – whole or portions, excluding offal and further processed)
Note: Prepared, cooked, seasoned, or packaged versions are usually standard-rated (15%).
Farming & Agricultural Inputs
Schedule 2, Part A
- Animal feed (including poultry, livestock, ostrich, fish, game feed)
- Stock licks
- Fertiliser
- Pesticides and herbicides
- Plants, seeds, bulbs, tubers for cultivation
- Remedies and medicines for animals (excluding syringes and veterinary services)
Note: Zero-rating for animal feed and fertilisers is currently under review – repeal date still to be announced via Government Gazette.
Fuel Levy Goods
Schedule 2
- Illuminating paraffin (marked, intended for heating/lighting)
- Petrol (all grades)
- Diesel (all grades, including biodiesel)
Note: Aviation kerosene and lubricants are standard-rated.
Exports & International Services
Section 11(1) and (2)
- Direct and indirect exports of movable goods
- International transport of passengers and goods (air, sea, rail, road)
- Services physically rendered outside South Africa
- Services supplied to non-residents (not connected to SA property)
- Repair/alteration of foreign ships or aircraft
- Supply of intellectual property for use entirely outside SA
Other Zero-Rated Supplies
- Sale of a business as a going concern
- Municipal property rates (when separately invoiced)
- Certain welfare and foreign donor-funded activities
- Goods temporarily imported for repair and re-export
Important Notice: This list is a practical summary only. For full legal definitions and conditions, refer to the VAT Act No. 89 of 1991 and the latest SARS VAT 404 Guide. Always verify with a registered tax practitioner for your specific circumstances.
Frequently Asked Questions
What does "zero-rated" mean for VAT in South Africa?+
Zero-rated means the item attracts 0% VAT instead of the standard 15%. The item is still a taxable supply, so VAT-registered vendors can claim input VAT on related expenses — that's the key difference from VAT-exempt items, where input VAT cannot be claimed.
Is white bread zero-rated for VAT?+
No. Only brown bread (including brown rolls and brown buns) is zero-rated. White bread is standard-rated at 15% VAT. Brown wheaten meal and brown bread flour are also zero-rated.
Are fresh fruit and vegetables zero-rated in South Africa?+
Yes. Fresh fruit and vegetables are zero-rated. Canned vegetables qualify only if packed in brine or water with no added sugar, salt, or sauce. Prepared, cooked, or seasoned versions are usually standard-rated at 15%.
What is the difference between zero-rated and VAT exempt?+
Zero-rated items are taxed at 0% VAT but vendors can still claim input VAT on business expenses related to those supplies. VAT-exempt items (like residential rental and educational services) fall outside the VAT system entirely — no VAT is charged, but input VAT also cannot be claimed.
Are exports zero-rated for VAT in South Africa?+
Yes. Direct and indirect exports of goods are zero-rated, as are international transport services and services rendered physically outside South Africa. Specific documentation is required to support zero-rating.
Are eggs and milk zero-rated in South Africa?+
Yes. Hen's eggs in the shell are zero-rated. Fresh and UHT milk (full cream, low fat, fat free — unflavoured) is zero-rated, as is cultured milk like maas and unflavoured milk powder. Flavoured milk is standard-rated.
Is petrol or diesel zero-rated for VAT?+
Yes. Petrol, diesel (including biodiesel), and illuminating paraffin are zero-rated as fuel levy goods. Aviation kerosene and lubricants are not zero-rated — they're standard-rated at 15%.
Can vendors claim input VAT on zero-rated supplies?+
Yes. Because zero-rated supplies are still taxable supplies (just at 0%), VAT-registered vendors can claim input VAT on goods and services used to make them. This is a major difference from exempt supplies.
Related Resources
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