South Africans continue to feel the pressure of rising food prices, and knowing which essential items are exempt from Value-Added Tax (VAT) in 2025 can offer real financial relief. The South African Revenue Service (SARS) updates its list of VAT-free groceries periodically, reflecting economic trends and national policy changes. In May 2025, the updated Grocery VAT Exemption Items 2025 list includes a range of staple food products that help households manage their grocery bills more effectively.
Updated Zero-Rated Food List in 2025
The term “zero-rated” refers to products that are taxed at a rate of 0%. These items are not taxed under the 15% VAT system and are crucial in maintaining food affordability. The current zero-rated food list for May 2025 includes essential items such as:
| Item Category | Examples |
|---|---|
| Bread Products | Brown bread, wholemeal bread |
| Cereals | Maize meal, brown rice |
| Fresh Produce | Fresh fruit and vegetables |
| Protein | Dried beans, lentils, eggs |
| Dairy Substitutes | Milk powder, unflavoured milk |
| Baby Food | Infant formula |
| Cooking Essentials | Vegetable oil, salt |
| Other | Mealie rice, pilchards in tins |
This exemption list is designed to protect lower-income households from the full brunt of inflation, ensuring that nutritional staples remain accessible.
Why These Grocery Items Are VAT-Free
The primary goal of the Grocery VAT Exemption Items 2025 is to support food security. Tax-free groceries reduce the cost burden on essential nutrition. SARS selects these items based on their importance in the average South African diet, with input from economists, food policy experts, and public stakeholders. By making these groceries VAT-free, the government aims to target relief where it’s most needed — in the shopping baskets of low and middle-income earners.
Changes in the 2025 VAT Exemption List
While most of the previously exempt items remain, May 2025 introduced minor changes. The inclusion of more plant-based protein options like chickpeas and textured vegetable protein (TVP) reflects shifting dietary patterns and affordability concerns. The list also reinforces support for local agriculture, as many zero-rated items are produced domestically.
Consumers should also note that while many basic items are tax-free, processed or value-added versions of these foods — such as flavored milk or pre-seasoned lentils — do not qualify. Knowing the distinction between zero-rated and standard-rated versions of groceries can make a tangible difference in monthly expenses.
How to Maximize Savings on VAT-Free Groceries
Shoppers looking to reduce grocery bills should familiarize themselves with the full zero-rated food list and use it to guide purchasing decisions. Bulk buying dried legumes, using unprocessed staples in meal planning, and avoiding packaged variants can stretch household budgets further. Retailers typically label VAT-exempt items clearly, but consumers should still check receipts for accuracy.
An additional tip: local markets often sell unpackaged, VAT-free produce and staples at lower prices than supermarkets. This supports both community-based commerce and household savings.
Conclusion
Understanding the Grocery VAT Exemption Items 2025 can significantly impact monthly food costs, especially in times of economic uncertainty. As the government maintains its commitment to affordability, consumers should stay updated on any future amendments to the VAT exemption policy.
Being informed about which tax-free groceries are included in the exemption list empowers households to make better financial choices, supports nutrition, and ensures a fairer tax system.
FAQs
What are zero-rated food items?
Zero-rated food items are essential groceries that carry a 0% VAT, making them more affordable to consumers.
Has the 2025 exemption list changed from previous years?
Yes, May 2025 saw the inclusion of new plant-based protein items, but the core list remains similar to previous years.
Are all types of bread VAT-free?
No, only unprocessed brown and wholemeal bread qualify as VAT-free under the exemption rules.
Do baby products fall under VAT exemption?
Yes, infant formula is included, but not all baby products are VAT-free. Always check the label and official list.
How can I tell if an item is VAT-free?
Retailers usually label them, but checking the receipt or consulting SARS’s official exemption list is best.
Click here to learn more