Yes, eggs are generally zero-rated for VAT/GST purposes in many jurisdictions, including South Africa, Canada, Ireland, and other regions where basic food items are exempt from consumption tax to ensure affordability. They are classified as essential, basic groceries, even when sold from vending machines in some areas.
Currently, there are 21 food items in the zero-rated basket: brown bread, maize meal, rice, maize meal, vegetables, samp, fruit, mealie rice, vegetable oil, dried mealies, milk, dried beans, cultured milk, lentils, brown wheaten meal, pilchards/sardines in tins, eggs, milk powder, edible legumes, dairy powder blend and ...
GST-Free Items:
Eggs and milk. Bread without filling or toppings. Rice, pasta, and plain cereals.
Dairy powder blend.
Common examples of zero-rated sales include basic groceries, prescription drugs, and certain medical devices. Understanding zero-rated sales is essential for both consumers and businesses, as it affects pricing and tax obligations.
All unprocessed foods for human consumption, including raw meat and fish, fruit and vegetables, cereals, nuts, pulses and culinary herbs are zero rated.
Zero-rated goods are not taxed during sale, but producers can claim a credit for the value-added tax paid on inputs. On the other hand, exempt goods are not taxed either, but producers cannot get a credit for the VAT paid on inputs.
Food and drink
So, VAT won't be charged or accounted for on the bread, milk, eggs or fresh vegetables that a supermarket or corner shop sells. However, items like confectionery, sports drinks, soft drinks, ice cream, crisps and savoury snacks are always standard-rated (currently 20%).
What items are eligible for a VAT refund? Typical Recoverable Expenses are:
Examples of common zero-rated basic groceries include:
Fresh, frozen, canned, and vacuum-sealed fruits and vegetables. Breakfast cereals. Most milk products. Fresh meat, poultry, and fish.
Farmers do not need to collect sales tax on farm and food products intended for later human consumption. This includes all fresh and processed foods, like fruits, vegetables, baked goods, jellies, jams, preserves, meats, eggs, dairy products, syrup, honey, cider, etc (unless listed below).
What is the GST rate for eggs? Fresh eggs are exempt from GST (0%) under Chapter 4, as they are classified as unprocessed food products.
This means that the customer does not have to pay any VAT as it is charged at a rate of 0%, but because the supply is taxable, the supplier can reclaim VAT paid on the costs of making that supply. Examples of zero-rated goods and services include most food items and children's clothing.
Exceptions that are zero rated include milk and milk drinks, tea, maté, herbal tea, coffee and cocoa, preparations of yeast, meat and egg.
Filing the Application:
VAT exempt supplies of goods and services – what are they?
Who Can Claim a VAT Refund? In the USA, the opportunity to claim a VAT refund is generally reserved for foreign businesses and tourists who have incurred VAT on eligible expenses within VAT-imposing countries. US businesses may also seek VAT refunds from their business expenses in these countries.
Shipping your purchases home directly from the retailer is another way to avoid paying VAT, but the added cost may outweigh any savings. You can try to get your VAT refund through the mail but the process takes much longer and can be unreliable. Most people submit their requests at the airport on their way home.
California
The current list of food items exempt from VAT include:
What is Zero Rating? By zero rating it is meant that the entire value chain of the supply is exempt from tax. This means that in case of zero rating, not only is the output exempt from payment of tax, there is no bar on taking/availing credit of taxes paid on the input side for making/providing the output supply.
Zero-rated supplies are supplies that are not subject to GST in certain situations. A rate of 0% applies to these supplies. For example, a New Zealand architect designs a building to be constructed on an overseas property for an overseas client.
The South African Poultry Association (SAPA) has submitted a formal request to National Treasury to remove the 15% value-added tax (VAT) from chicken, proposing that chicken be added to the list of zero-rated basic foodstuffs in the 2026 National Budget.
Examples of zero-rated purchases include buying goods you intend to export and buying international services. Examples of international services include international freight charges or IDD calls used for communicating with overseas clients.