HomeHome SearchSearch MenuMenu Our productsOur products

11 Vat exempt supplies you need to know about

by , 13 August 2014
Quick question: Do you know what exempt supplies are? If not, you're not alone.

Not many vendors know what exempt supplies are. In fact, they often confuse them with zero-rated supplies.

The good news is from now onwards, you'll no longer be in the dark about exempt supplies.

Today, we reveal what exempt supplies are and, most importantly, we reveal the 11 exempt supplies you need to know about so you can comply with Vat law.

What are exempt supplies?


In this article, experts behind the Practical Vat Loose Leaf Service explain that exempt supplies are supplies that are exempt of tax. There's no output tax, no input tax and no tax invoices. Tax doesn't apply at all in this case.

Now that you know what exempt supplies are, let's take a look at the 11 Vat exempt supplies.

 

*********** Product endorsement ************


Confidential: 13 Vat secrets SARS doesn't want us to publish

These secrets will give you insider information on how to red-flag potential Vat risk areas, before the SARS team does.

Click here to find out what they are
 

************************************************
 

Here are the 11 Vat exempt supplies you need to know about


Exempt supplies are the following:
 

#1: Supplying financial services (such as loans, life insurance, levying of interest);

#2: An association not for gain which supplies goods which were donated to it;

#3: Letting of residential accommodation. This includes supplying staff housing;

#4: Activities of political parties and bargaining councils;

#5: Supplying leasehold land for residences;

#6: Supplying land situated outside of South Africa;

#7: Levies paid to a body corporate of a sectional title company, a share block company, home owners association or to a retirement village;

#8:  Road and rail transport to fare paying passengers;

#9: Supplying educational services;

#10: Supplies by a trade union; and

#11:  Services of caring for children in a crèche or an afterschool care centre.


The two important points you need to know about exempt supplies are that:
 

  1. If your business renders partly taxable and partly exempt supplies, you may register for Vat for the taxable part.
  2. But, if your business only renders the above exempt supplies, you'll never be able to register for Vat even if your turnover is more than R1 million in a 12-month period.


Now that you know what exempt supplies are and know about the 11 Vat exempt supplies, comply with Vat law.

 



Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>