Q: What are the
VAT implications for the supply of coconut oil which is used for cooking? Is it
zero-rated? My client distributes coconut oil to retailers and wholesalers.
A: A coconut is a
fruit and not a vegetable. In terms of Treasury’s list of zero-rated and exempt
foodstuff, only vegetable oil (depending on what is added to the oil) is listed
and the standard rate should therefore apply.
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.
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