Why some payments have no VAT to claim
Zero-rated, exempt and blocked: the three reasons the VAT column shows R0.
Only VAT vendors can claim VAT back, and only with a valid tax invoice. Even then, some payments never give you VAT to claim.
Zero-rated: VAT is charged at 0%
- Fuel (petrol and diesel)
- Basic foods like brown bread, maize meal, milk, eggs, rice, fresh fruit and vegetables
- Exports and international transport
There's no VAT in the price, so there's nothing to claim.
Exempt: no VAT at all
- Local passenger transport by road or rail: taxis, Uber, Bolt, buses, Gautrain
- Residential rent
- Most financial services, like bank fees on interest and life cover
Blocked: VAT was charged, but you can't claim it
- Entertainment: meals, drinks and hospitality for clients or staff (s17(2)(a) of the VAT Act)
- Club memberships
- Buying a passenger car (but services and repairs to it can be claimed)
Blocked VAT is still part of the cost. For income tax, the full amount (including VAT) of a business meal can be deducted if you're allowed to claim entertainment.