UK Accounting Glossary
Goods and services that are taxable for value added tax (VAT) purposes but are currently subject to a tax rate of zero.
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.
Zero-rated goods and services are goods and services that are taxable for value-added tax purposes but are currently subject to a tax rate of zero.
These differ from exempt status in that the VAT attributable is allowable for input tax credit.
Examples of Zero-rated supplies include:
Countries using VAT designate certain goods as zero-rated goods. Zero-rated goods are typically individualised items. In many cases, buyers use zero-rated goods in production and benefit from paying a lower price for the goods without the tax.
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Definitions for Zero-Rated Goods And Services are sourced/syndicated from:
This glossary post was last updated: 27th January 2019.