Zero Rated VAT Items in South Africa (2026)

Updated April 2026 | Reviewed by Sarah van der Merwe CA(SA)

In South Africa, certain essential goods and services are subject to a 0% VAT rate. This means that although they are taxable supplies, the tax charged is zero percent. This policy, managed by SARS, aims to provide relief to lower-income households by making basic food and necessities more affordable.

List of Zero-Rated Basic Food Items

The following basic foodstuffs are the most common zero-rated items in South Africa. For a vendor to supply these at 0%, they must meet specific SARS criteria.

Other Zero-Rated Supplies

Beyond food, several other categories of supplies are taxed at 0% in South Africa:

• Exports: Goods exported from South Africa to foreign countries.
• International Transport: Conveyance of passengers or goods to or from South Africa.
• Sale of a Going Concern: Selling a business as a functioning entity to another VAT vendor.
• Certain Services: Services physically rendered outside South Africa.

Difference Between Zero-Rated and Exempt Items

It is important not to confuse zero-rated items with VAT exempt items. Although neither results in VAT being added to the price, the tax implications for the business are different:

• Zero-Rated: The rate is 0%. The business can still claim input VAT on expenses incurred to produce these goods.
• Exempt: No VAT is charged, but the business cannot claim input VAT on expenses related to these supplies. Examples include residential rent and financial services.

Frequently Asked Questions

Is white bread zero-rated?

No, only brown bread is zero-rated. White bread is subject to the standard 15% VAT rate.

Are sanitary products zero-rated?

Yes, as of April 2019, sanitary towels and pads are zero-rated in South Africa.

Can I claim VAT back on zero-rated items?

Since the VAT charged is 0%, there is no output VAT to pay, but you can claim input VAT on the costs of producing zero-rated supplies.

For quick calculations, use our SARS compliant VAT Calculator or learn how to calculate VAT manually.

Sarah van der Merwe CA(SA)

Sarah is a CA(SA) with 12 years of experience. She specialises in VAT compliance for South African businesses. Her mission is to simplify complex tax rules for entrepreneurs.

Reviewer of calculations • Tax Specialist