Define: Zero-Rated Goods And Services

UK Accounting Glossary

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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.

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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.

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