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. For standard items, you can use our VAT Calculator South Africa. This zero-rating 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. If you are bringing goods into the country instead, see how the tax applies using our Import VAT Calculator.
• 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. You can read our detailed breakdown of VAT-free items in South Africa to understand why the tax implications for businesses 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. Learn more about our mission and compliance standards on our About page.

Reviewer of calculations • Tax Specialist