Is petrol VAT exempt?

Do we pay VAT on petrol?

A fairly wide range of basic foodstuffs together with diesel, petrol and illuminating paraffin are zero-rated as distinct from exempt. This means that the customer pays no VAT, but the supplier can, if VAT registered, claim input VAT because they are making VATable supplies (albeit at a rate of zero).

Is petroleum products exempted from VAT?

Petroleum Products: the Order exempts petroleum products from VAT including spirit, kerosene, natural gas, other liquefied petroleum gases and gaseous hydrocarbons. Renewable energy equipment such as wind and solar energy generators have been included in the exemption list.

Is fuel zero-rated or exempt in South Africa?

Zero-rated supplies

Most of the items refer to exports and international transport, but other specified goods utilised for farming purposes, the sale of an enterprise as a going concern, certain basic foodstuffs, fuel subject to the fuel levy, and deemed supplies by welfare organisations are also zero-rated.

Is VAT charged on fuel in South Africa?

Alongside a new VAT rate, there is also the possibility of a restructuring in the way fuel is taxed in South Africa, said Pheiffer. “We currently have a zero rating on fuel, which means that we don’t pay any VAT on petrol or diesel,” he said.

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Who is VAT exempt?

Some sales of goods and services are exempt from VAT . That means if you sell these goods and services you won’t charge your customers any VAT, and if you buy them there will be no VAT to reclaim. If you make some exempt sales, you can’t reclaim VAT on any costs you incur while making those sales.

What products are subject to VAT?

Food and drink, animals, animal feed, plants and seeds

These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

Who is a VATable person?

In other words, a VATable person is one who trades in VATable goods and services for a consideration.

Why are some items zero rated?

South African legislation. The VAT Act provides for the supply of certain so-called basic foodstuffs to be zero rated. … The reasoning behind this zero rating is to provide basic foodstuffs at a reduced price to benefit the poor.

Is fuel a zero rated supply?

The supply of fuel, diesel and illuminating kerosene is specifically zero-rated in terms of sections 11(1)(h) and (l) of the VAT Act, read with Part 5A of Schedule 1 of the Customs and Excise Act.

What is the difference between tax exempt and zero rated?

You need to understand that there is a difference between Zero Rated and Exempt. Zero Rated are goods and services that basically are taxable, but the legislator decided to rate it at a “0” rate (for now). … Exempt means that goods or services are not taxable.

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Is milk exempt or zero rated?

Zero rated items include most of the goods you will sell, such as: milk and dairy products.

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