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Is the supply of animal medicine by a vet to a farmer zero-rated?

19 May 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: Our client is a veterinarian and supplies farmers with animal medicine. He would like to purchase these supplies without being charged VAT (the supply to him is zero rated) and then on-sell these supplies at a zero rate of VAT. In order for him to buy these supplies at a zero rate, he need his VAT 103 amended. Who do we approach at SARS, as we have been back and forth with no definite answers?

A: We don’t believe that the veterinarian qualifies for the rate of zero per cent. 

The provisions of paragraph 1 (of Part A of Schedule 2 to the Value-added Tax Act) applies only if SARS, in respect of a vendor registered under this Act, is satisfied that that vendor, being the recipient of any such goods, carries on agricultural, pastoral or other farming operations and has issued to him a notice of registration in which authorization is granted whereby the goods concerned may be supplied to him at the rate of zero per cent.  The veterinarian would not be carrying on farming operations and cannot receive the goods at the rate of zero per cent. 

It is the farmers that will qualify and the veterinarian would not need to request SARS to change his VAT103. 

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.

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