The Complete Guide to Zero-Rated VAT:

46 supplies you can zero rate and the documents you must keep to validate them

What you'll get from the Zero-Rated Vat section in the Practical VAT Handbook
  • What is the zero rate of Vat? 
  • The penalties for getting zero rating wrong? 
  • 22 Supplies of goods where you can apply 0% Vat 
  • 24 Services that can be zero-rated
  • 46 Checklists: Documents you must keep to validate zero-rated supplies
  • How to sell a going concern and apply the zero rate correctly
  • Exempt vs. zero rated supplies
  • Zero-rated supplies Vat Case Law - Master Currency vs. SARS

Also included in the Practical Vat Handbook:

  • Input tax– claim all the input tax possible and find out about legal loopholes for even more VAT savings
  • Bad debts– find out how to claim input tax on debts that went bad
  • Objections and appeals– don’t agree to a SARS assessment? Find out how to object and increase the chance of success
  • Refunds– How to make sure SARS pays you in 21 days!
  • Registration– find out how to register and get your VAT number the same day
  • Travel and accommodation– How to claim input tax on business travel and accommodation
  • Calculating your Vat –never underpay or overpay VAT again
  • Returns – a zero in the wrong place on your VAT return could trigger an audit, this chapter will help you avoid that
  • Record keeping– Make sure you’re keeping the correct records
  • Second-hand goods– Yes, you can claim input tax on second-hand goods
  • Tax invoices– Make sure you know SARS’ 8 requirements for a valid invoice, or risk losing your input tax claims
  • Zero-rated supplies– Claim all the input tax available and never pay over any output tax.
  • Plus much more!

Dear reader,

Let’s face it. Zero-rated VAT is complicated!

Take Master Currency for example. They charged VAT at the zero rate because they operated out of the duty free zone in the airport. Sounds correct, right?


And what about De Beers Consolidated Mines? They imported services from London and expected it to be zero-rated, right?

Wrong again!

In both cases, SARS demanded their output tax. This came in excess of R7 million for De Beers alone!

You see, when you charge VAT at the zero rate, you must prove to SARS you’re entitled to do so! Because when SARS audits you (not “if”, “when”), and you don’t have proof, it will charge you penalties and interest. And it will deem the amount to include VAT and expect the 14% from you!

But don’t be caught unawares. 

Find out which items can be zero-rated and how to do it correctly. And what documents you need to keep on hand so SARS doesn’t raise an assessment against you. 


Declaring zero-rated goods on your VAT return is an immediate trigger for a SARS VAT audit

If you deal with: Zero-rated Vat affects you and you will” trigger a Vat audit! And this is just some of the instances where you apply Vat at the zero rate on supplies.
There’s no getting away from it.
You see, when you charge zero-rated VAT on supplies, you can still claim all the input tax. But you pay no output tax.
SARS says this is open to abuse and will automatically flag you for an audit when you declare for zero-rated goods on your VAT return.
Plus, many vendors get zero rating wrong!
In the last year alone SARS sent over two million letters to VAT vendors, primarily selecting them for a desk audit. But yet, there are only 770 000 VAT vendors. That means you could receive this letter about three times in one year!

You need to know all these things and understand what SARS looks out for, so you can stay under its radar.

In the zero-rated VAT section of the Practical VAT Handbook, we’ll show you how to get your zero rating correct. And everything you need to prove your zero rating to SARS and pass the VAT audit!

We’ll help you tackle the problems of zero-rated VAT with this one tool. Plus, solve all your other VAT problems.
The Zero-Rated VAT section in the 
Practical VAT Handbook will:

Show you 22 supplies and 24 goods you can charge at the zero rate
How to levy VAT correctly on zero-rated goods
Highlight the difference between zero-rated goods and exempt supplies
Where to declare zero-rated goods on your VAT return
How to claim the input tax on zero-rated supplies
The consequences of getting zero rating wrong
The recent changes to the VAT law on zero-rated supplies
List the correct documentation you must have to prove the zero rate to SARS so you can ace the SARS audit
And lots more.

Walk away knowing you’ve done everything correctly when it comes to zero-rated VAT. Having one document out of place means you could lose out on the zero rating concession and be forced to pay 14% to SARS and penalties and fines! Don’t let that happen to you.

Keep all financial records as proof you were entitled to charge VAT at the zero rate…

Zero rating causes the most confusion among local businesses when it comes to VAT.

That's why you must keep all documentary proof when you charge or buy goods/supplies at the zero rate of VAT. You must be able to prove to SARS that you were entitled to do so (Section 11(3) of the VAT Act).

If you don't have the right documents, or you don’t have all your documents in order, SARS will see the zero-rated invoice as a standard-rated one.

And you don't want this to happen to you!

SARS will deem the amount to include VAT at 14% (even though you didn’t add any). So it will demand the 14% from you.
Plus, SARS will charge you additional penalties and interest, leaving you out of pocket!

You can't afford to get zero rating wrong!

Let’s take the example of Master Currency for instance.

They operate foreign exchange facilities in the duty-free area of OR Tambo International Airport.
They levied VAT at the zero rate on charges to non-resident departing passengers in the duty-free zone.
But SARS raised an assessment on Master Currency.
Master Currency was shocked to receive an assessment. They operate in a duty-free zone, so it follows, there’d be no VAT on their services.
But SARS said the services they supply and are used in South Africa  can’t be zero-rated!
Master Currency took SARS to court in objection, but since they couldn’t prove they were entitled to charge VAT at the zero rate, the court dismissed the case, with costs.
Don’t let that happen to you.

Here’s why you need to get your hands on The Practical VAT Handbook

You can put your trust in it. It’s been researched, written, edited and reviewed by VAT experts.
Dee Bezuidenhout used to work at SARS as a VAT auditor. She’s been involved with VAT since its inception. For the last 24 years, she’s worked at SARS, a large auditing firm and now consults to the private sector on VAT matters and is the facilitator for the best-selling VAT Masterclass workshop.
And Peter Franck was one of the original team members who wrote the VAT law. And was the head of VAT at SARS. He has over 50 years of VAT experience.
We have an insider scoop!
Who better to trust than part of the original team who implemented the VAT law into South Africa?

Never be penalised for zero-rated VAT by SARS again!

The Practical VAT Handbook is the only comprehensive VAT Handbook you need to understand:

The zero rate of VAT – what does it mean, when do you use it and how to show it on your VAT return
The penalties for getting zero rating wrong – all the consequences and how to side-step them
24 Supplies of goods where you can apply 0% VAT – so you’re never guilty of charging the wrong rate
22 Services that can be zero-rated –claim all the input tax and pay no output tax
46 Checklists: All the documents you must keep to validate zero-rated supplies – Don’t let SARS reverse your input tax deductions on a technicality
Exempt vs. zero rated supplies – 60% of VAT vendors still get this wrong today, don’t be a statistic
Zero rated supplies VAT Case Law: Master Currency vs. SARS – Lessons you can learn from history
VAT interpretation note 57 - The new change in VAT law since 1 April 2015 you need to comply with

  Yes I want to get my zero rating correct and avoid a SARS assessment!

By ordering your copy of Practical VAT Handbook today:

You’ll learn how to meet all your of VAT obligations with minimum effort
The Handbook contains practical advice in a step-by-step format to help avoid penalties from SARS and complete/pay VAT in the most efficient way.

You can count on the advice in the Handbook, as it’s 100% legal
All information is referenced to the law and checked by external VAT experts/consultants.
Who should subscribe to the Practical VAT Handbook?
Accountants, bookkeepers, financial managers and directors, owners of companies, and anyone who deals with VAT issues.

And that's just the start

The Practical VAT Handbook comes with an essential updating service, the special report: The A-Z of VAT disputes!, access to the 24/7 expert Vat advice helpdesk and three bonus VAT saving reports.

You'll also immediately receive FIVE FREE BONUS GIFTS to  help you take the hassle out of VAT and make the Receiver your friend!

Combined, these gifts have a total value of R1 000 - Yours absolutely free

To welcome you as a new subscriber, you’ll get instant tax savings, with these FREE five gifts and services:
  1. You'll find out how to lodge a VAT objection and win.
  2. You have access to a personalised VAT Helpdesk service where a team of VAT experts are available 24/7 to answer your specific questions.
  3. How to prepare once SARS selects you for an audit
  4. 11 Tips for a stress-free registration process
  5. 3 Ways to avoid a 200% SARS penalty on fixed asset rentals

Total Value R2 999

But you only pay R999
(And it's backed with my 100% satisfaction guarantee)

The Practical VAT Handbook is developed by VAT experts, who individually charge their clients over R1 000 an hour, but here you pay just R1 995 for their 24/7 advice.

The full subscription is valued at only R2 999…. which is a pittance, compared to the tax savings you’ll make within a few months.

Today, you can secure the full subscription for as little as R999 excl VAT - a massive R2 000 saving..

Your entire package includes

The 500 page Practical Vat handbook (valued at R1 995)
Essential updating service* pay as you go
The A-Z of VAT disputes (valued at R159)
Free expert advice to solve your tax problems (valued at R499)
How to prepare once SARS selects you for an audit (valued at R115)
11 Tips for a stress-free Vat registration process (valued at R115)
3 Ways to avoid a 200% SARS penalty (valued at R115)

LOWEST PRICE GUARANTEE: When you subscribe to The Practical VAT Handbook Subscription Service, you will be invoiced for the option you select. The handbook comes with an essential updating service to keep you on top of updated legislation and new information. *The cost of each updating issue varies depending on the number of pages it contains and you will be invoiced for these when they are sent to you.

Yours sincerely

Peter Frank
Contributor: The Practical VAT Handbook

PS. Here's my personal guarantee to you. If at any time during the next 30 days, for any reason whatsoever, you decide the Practical VAT Handbook service isn’t for you, simply call or email us and return the Practical VAT Handbook in its original condition.
You will be refunded every cent of the subscription price.
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