Print Page   |   Report Abuse
News & Press: Technical & tax law questions

Is the sale of livestock between two VAT vendors zero rated?

30 January 2015   (0 Comments)
Posted by: Author: SAIT Technical
Share |

Author: SAIT Technical

Q: Please advise if it is possible to make a sale of livestock between two vat vendors as a zero rated transaction? (Like the sale of property between 2 vat vendors)

A: Both the sale of land and livestock used in a farming enterprise will be a standard rated supply between two VAT vendors. In our view both these assets will only be zero rated where the property or trading stock is sold as part of a going concern per s8(7) VAT Act read with s11(1)(e) VAT Act.

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by®  ::  Legal