Zero rated vat items are defined below this video. Enjoy. Please share this 1 minute video after watching. Thanks.
The definition of Zero Rated items are supplies of goods or services specified in the Vat Act that can be billed at 0% VAT. This means no additional amount of VAT will be added to the purchase price of zero-rated supplies and services.
The VAT Act, specifies sixteen Zero Rated VAT items and it’s important to know so you can get it right with SARS, and avoid penalties or difficult questions if you get audited.Obviously, a great bookkeeper and accountant will know these well and keep you out of trouble.
Its a good idea to share this article with your bookkeeper and accountant if your business frequently has transactions with zero rated VAT items. This is another step towards accounting excellence – completeness, accuracy, and validity.