Below you will find a breakdown of the new SARS VAT. ruling on imports of Vegetables and Fruit
The draft BGR VAT sets out the VAT rate applicable to the supply and importation of vegetables and fruit and withdraws BGR VAT No 18 dated 27 March 2013, ‘The Zero-Rating of Various Types of Dates.’ Just to clarify the ‘BGR’ means a binding general ruling issued under section 89 of the Tax Administration Act, 2011.
The ruling defines ‘zero-rated supplies’ as the supply of vegetables and fruit that have not been cooked or treated in any manner except for the purpose of preserving such vegetables and fruit in their natural state. Fresh and frozen vegetables and fruit supplied in the following manner are regarded as not having been ‘treated’ as envisaged in the said Item numbers, and therefore qualify for zero rating: cut (including vegetables and fruit cut into specific shapes), diced, sliced, shredded, crushed, minced, pureed, peeled, de-pitted, and compressed. The aforementioned zero-rating applies regardless of whether the vegetables and fruit are sold individually.
Frozen vegetables and fruit that have been blanched in hot water are regarded as having been ‘treated’ for the purpose of preserving the vegetables and fruit in their natural state, and therefore the supply of such frozen vegetables and fruit qualifies for the zero rating. The supply of a mix or a combination of vegetables and fruit by a store or similar establishment, whether or not at the delicatessen section of the establishment, may be zero-rated.
Vegetables and fruit supplied in the following manner are specifically excluded (a) Cut, diced, sliced or peeled vegetables or fruit to which any other substance has been added whether or not separately packed in the same container (other than for purposes of preserving the vegetables or fruit in their natural state), (b) Fresh or frozen vegetables and fruit that have been treated with an additive for the purpose of adding colour or flavour (for example, glucose, sugar or salt), (c) Dehydrated, dried, canned or bottled vegetables or fruit, and (d) Vegetables or fruit smoothies or juices, and any similar products