The general rule is that if you're registered as a Vat vendor, you must include Vat at the standard rate or zero-rate, in the price of your goods and services. And then if you have a Vat liability, you pay the assessed amount over to SARS in your defined tax period.

But there's a significant exception to this general rule: Exempt Vat supplies! And there are three things to remember about exempt supplies:

1. You don't include Vat in the price of exempt goods
2. You don't include the value of the exempt supplies in your taxable turnover
3. If you ONLY supply exempt goods or services, you don't have to register as a Vat vendor.

It's not always easy to spot the exempt supply though! In fact, it's one of the most common Vat issues. Vendors simply don't know whether or not to charge Vat for a supply or service rendered

We answer all of your Vat questions about exempt supplies in the Practical Vat Loose Leaf.

The Practical Vat Loose Leaf is not your ordinary guide; it's a service where you can always find up-to-date information, advice and tips.

Top-class Vat specialists have put it all together for you!

You can have all the answers at your fingertips. Just order the Practical Vat Loose Leaf for a 14-day trial. Within this 14-day period you can use it as often as you like at the publisher's cost. Find out for yourself whether it is worthwhile having on your desk when you need professional help.

Two easy steps to determine whether or not to charge Vat for a supply or service

Use this fail safe rule to solve your Vat dilemma in two EASY steps!

Step #1: While the new law says you must record the name and Vat number of your client on your tax invoices, to determine whether to charge Vat or not you must know the Vat status of the vendor/ seller/supplier. Always look at the Vat status of the vendor first ; if he's registered for Vat, it's a taxable supply and you must levy Vat.

Step #2: Ask yourself, is the supply an exempt supply? The list of exempt supplies is very limited:

1. Passenger service by rail or road
2. Financial services (e.g. life insurance, medical schemes, etc)
3. Supply by a charitable organisation of any donated goods (e.g. the Child Welfare Centre that sells donated teddy bears, to raise funds)
4. Rentals on residential property
5. The sale or rental of land outside SA
6. Shareblock and body corporate levies but not home owners associations
7. Educational services
8. Union membership fees
9. Letting of leasehold land, where the land will be used for erecting dwellings
10. Service of caring for children by a creche or an after-school care centre (after-care).

Try our complete Vat Advisory Service risk-free for 14-days. As part of this service you'll receive the Practical Vat Loose Leaf, three Bonus Reports, Regular updates, the daily Tax Bulletin, Online access to past Vat Updates and access to the Vat Helpdesk.

What else you'll discover in the Practical Vat Loose Leaf, to help you take control of your Vat:

Checklists, to save you time and ensure you don't miss a thing!

• 7 items you can claim input tax on
• 6 vehicles that SARS opens the doors to
• 4 criteria you must meet to zero-rate the sale of your business
• Documents to attach to your Vat101 application
• 6 basic rules about travel and Vat
• 21 deemed supplies

Vat advice you can put into practice today:

• How to complete your Vat return
• How to deal with errors on your return
• 18 Vat records you must keep
• 2 instances when SARS will deviate from the normal tax invoice requirements
• 16 goods that can be zero-rated
• 3 crucial records to keep when buying a business as a going concern
• 4 important documents to keep for export between branches