Define: Zero-Rated Goods And Services

UK Accounting Glossary

Definition: Zero-Rated Goods And Services


Quick Summary


Examples of Zero-rated supplies are: Most food items Sewerage and water services for non-industrial users Books and periodicals Certain Charitable Supplies New Domestic Buildings Transport fares for vehicles intended to carry not less than 10 passengers Banknotes Medicines Children’s footwear and clothing Fuel for Lifeboats and Air Ambulances All exports.



What is the dictionary definition of Zero-Rated Goods And Services?

Dictionary Definition


Refers to goods and services that are taxable for value added tax purposes but are currently subject to a zero percent tax rate.

These differs from exempt in that the VAT attributable is allowable for input tax credit.


Full Definition


Examples of Zero-rated supplies are:

  • Most food items
  • Sewerage and water services for non-industrial users
  • Books and periodicals
  • Certain Charitable Supplies
  • New Domestic Buildings
  • Transport fares for vehicles intended to carry not less than 10 passengers
  • Banknotes
  • Medicines
  • Children’s footwear and clothing
  • Fuel for Lifeboats and Air Ambulances
  • All exports.

Zero-Rated Goods And Services FAQ's