Question: Is there VAT on airtime in South Africa?

South Africa: VAT And Airtime Vouchers – No Relief For Mtn. … The sale of the monetary voucher is disregarded for VAT purposes, and VAT will become payable when the monetary voucher is used to acquire goods or services.

Is there VAT charged on airtime?

As the supply of ‘airtime’ in the form of a voucher attracts revenue for the applicant, in terms of section 7(1)(a) of the VAT Act tax is levied ‘on the supply by any vendor of goods or services supplied by him on or after the commencement date in the course or furtherance of any enterprise carried on by him’.

What is exempt from VAT in South Africa?

Goods and services exempted from VAT are: Non-fee related financial services. Educational services provided by an approved educational institution. Residential rental accommodation, and.

What items is VAT not charged on?

The list of zero rated items includes the following items:

  • brown bread.
  • dried mealies.
  • dried beans.
  • lentils.
  • pilchards or sardinella in tins or cans.
  • rice.
  • fresh fruit and vegetables.
  • vegetable oil.
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Does electricity have VAT?

How much is VAT on energy? The majority of businesses will be paying VAT at a rate of 20% on their electricity and gas bills.

Do you charge VAT on PPE?

Under current UK VAT law, the standard rate of VAT (20%) applies to the sale of PPE .

What goods and services are exempt from VAT?

HMRC has full list of VAT-exempt products, but some of the main goods and services that are exempt from VAT include:

  • Sporting activities and physical education.
  • Education and training.
  • Some medical treatments.
  • Financial services, insurance, and investments.

What can you claim VAT on South Africa?

When you sell products or services under the standard (15%) or zero rate (0%), you can claim Input VAT. If you sell products/services under exempt supplies, you cannot claim Input VAT.

VAT is generally split into three categories:

  • Standard-rated: VAT at 15%
  • Zero-rated: VAT at 0%
  • Exempt: No VAT.


Can you claim VAT on fuel in South Africa?

You can claim a diesel fuel refund if you are a registered VAT vendor and your business is involved in one of the following industries: farming on land. mining on land.

Is the current VAT being charged on all goods in South Africa?

VAT is only charged on taxable goods and services made by the business. … The current standard rate is 15% on most goods and services and imported items, with certain items exempted or charged at a zero rate, such as exports.

What is the difference between exempt and zero-rated VAT?

Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. Exempt items are goods on which no VAT is paid or charged, but which still need to be recorded on the VAT Return. …

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Is milk VAT exempt or zero-rated?

All hot beverages and any drinks, including zero-rated drinks sold for consumption on your premises are standard rated. Cold drinks that are zero-rated in their own right, for example, milk and are supplied for off-premises consumption can be treated as zero-rated.

What is VAT chargeable on?

The standard rate of VAT in the UK is currently 20% and this is the rate charged on most purchases. However, there are other VAT rates which you need to be aware of as a business. Reduced rate VAT is charged on sanitary products, energy saving measures and children’s car seats and is charged at 5%.

Can you claim VAT on electricity South Africa?

Vendors making zero-rated supplies are entitled to full input VAT credits on costs incurred to make such supplies (in other words, they can claim the VAT paid on expenses such as stock, water and electricity back from Sars).

Do you pay VAT on licenses?

A TV Licence is exempt from Value Added Tax (VAT). Therefore the price of a TV Licence will not be affected by any increases or decreases to the VAT rate.

Is there VAT on electricity South Africa?

For one thing, the allowable tariff increase announced by the National Electricity Regulator of SA (Nersa) on Thursday does not include VAT. So that needs to be added. If you get your electricity from your local municipality rather than directly from Eskom, then you will pay an additional surcharge.

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