In South Africa, Value-Added Tax (VAT) affects the pricing of most goods and services. However, to protect lower-income households and ensure food security, specific grocery items are exempt from VAT. As of June 2025, the South African Revenue Service (SARS) continues to maintain and update its list of Grocery VAT Exemption Items 2025, ensuring that essential nutrition remains accessible.
Understanding which items are tax-free can help households plan better and reduce monthly grocery bills. The exemption applies to everyday staples, and knowing what’s included can empower consumers to make smarter purchasing decisions.
What is the Zero-Rated Food List in 2025?
The zero-rated food list refers to basic food products that are taxed at 0% VAT. This does not mean the items are free—just that they are not subject to the standard 15% VAT that applies to most goods in South Africa. The list is designed to reduce the tax burden on essential items, especially for economically vulnerable groups.
In June 2025, the zero-rated food list includes the following:
Zero-Rated Grocery Items in South Africa – June 2025
| Category | VAT-Free Grocery Items |
|---|---|
| Grains | Brown bread, maize meal, rice, samp |
| Dairy & Eggs | Milk (unflavored, unprocessed), eggs |
| Vegetables | Fresh vegetables, unprocessed legumes |
| Fruits | Fresh fruit only |
| Animal Protein | Dried beans, lentils, pilchards (in tins) |
| Flour Products | Mealie rice, cake flour |
| Cooking Essentials | Vegetable oil |
| Infant Nutrition | Baby formula (infant food) |
This list remains static unless amended by SARS through national budget updates. As of mid-2025, no new items have been added, but there has been increased public discussion around expanding the list to include sanitary products and more plant-based alternatives.
Why Are Some Groceries VAT-Free?
South Africa’s economic disparities make access to basic nutrition a national priority. Tax-free groceries help combat food insecurity by reducing the cost of household essentials. By exempting these specific items, the government aims to ensure that even under financial strain, families can afford a minimum nutrition standard.
This targeted approach prevents VAT from becoming a regressive tax, which would otherwise take a larger portion of income from low-income households.
Grocery VAT Exemption Items 2025: What You Should Know
Consumers often assume all basic groceries are VAT-free, but that’s not the case. Processed, flavored, or branded alternatives of zero-rated items often include VAT. For instance, brown bread is zero-rated, but white bread and sweetened or specialty loaves carry VAT.
Similarly, plain milk is VAT-free, but flavored or fortified milk products are not. Understanding these distinctions is essential for maximizing savings.
Retailers are legally required to show the VAT rate on receipts, helping customers identify which items are zero-rated. It’s always wise to check receipts and compare prices on essential goods to ensure you’re getting full VAT relief.
Could the Zero-Rated Food List Change in the Future?
There is growing advocacy to expand the zero-rated food list to include items that cater to dietary needs and lifestyle changes. Proposals under review include:
- Plant-based milk alternatives
- Sanitary products
- Gluten-free products
While none of these proposals have been approved as of June 2025, the pressure is mounting. Any changes will likely be announced in future budget speeches.
Conclusion
Understanding the current list of Grocery VAT Exemption Items 2025 is critical for South African households looking to manage expenses without sacrificing nutrition. As of June 2025, the list remains focused on unprocessed, essential food items. Staying informed about these exemptions can lead to smarter, more cost-effective shopping habits.
FAQs
What are zero-rated grocery items in South Africa?
Zero-rated grocery items are basic food products exempt from VAT. These include items like maize meal, brown bread, milk, eggs, and fresh produce.
Is rice VAT-free in 2025?
Yes, plain white rice remains a VAT-free item under the Grocery VAT Exemption Items 2025 list.
Are sanitary pads included in the VAT exemption?
As of June 2025, sanitary products are not yet part of the VAT-free grocery list, though their inclusion is under review.
Are frozen vegetables VAT-free?
Only fresh, unprocessed vegetables are zero-rated. Frozen or pre-cooked vegetables are usually subject to VAT.
How can I check if an item is VAT-free?
Look at your receipt. VAT-free items should reflect a 0% VAT rate. Also, consult the SARS website for the most up-to-date list.
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