Zero-rated Goods
Zero-rated Goods refers to items that are taxable, but the rate of tax is nil on their input supplies. Zero-rated goods are products on which a Value Added Tax (VAT) is not levied in countries that use a VAT. Examples of goods that may be zero-rated include many types of food and beverage, exported goods, donated goods sold by charity shops, equipment for the disabled, prescription medications, water and sewage services, books and other printed publications, children’s clothing, and financial services. The VAT is an extremely proficient flat expenditure tax that reduces the incidence of non-compliance. More than 100 countries have adopted it, with rates ranging from 10% – 25%. Therefore, buying zero-rated goods can save customers a great amount of money.
Zero-rated goods are goods that aren’t subject to value-added (VAT) tax. Examples of items that may be zero-rated contain definite foods and beverages, exported goods, donated goods sold by charitable trust shops, apparatus for the disabled, recommendation medications, water and sewage services, books and other printed publications, and children’s clothing.
