VAT Categories Explained (Standard, Zero, Exempt)

## VAT for Shop Owners South Africa (and many other regions) use a Value Added Tax (VAT) system. Our POS calculates this automatically. ### The Three Categories 1. **Standard Rated (15%)**: Most goods and services. 2. **Zero-Rated (0%)**: Essential goods like basic food items (bread, milk, eggs). 3. **VAT Exempt**: Services not subject to VAT (e.g., certain educational services). ### How it Works in the POS When you set up a product, you assign a VAT Category. When a sale is made: - The system calculates the VAT portion. - This is logged and summed in the Accounting Dashboard. ### Example If you sell a product for **R100** at 15% VAT: - The VAT component is **R13.04** (100 / 1.15 * 0.15). - This **R13.04** is your liability to pay to SARS. > Always consult a tax professional for specific advice.