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What are the VAT implications of the sale of coconut cooking oil?

Monday, 09 March 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

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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