Define: Zero-Rated

UK Accounting Glossary

Definition: Zero-Rated


Quick Summary of Zero-Rated


Denoting goods on which the buyer pays no VAT although the seller can claim back any tax he/she has paid.



What is the dictionary definition of Zero-Rated?

Dictionary Definition


Denoting goods on which the buyer pays no VAT although the seller can claim back any tax he/she has paid.

These include some food items, newspapers, magazines and books, medicine and children’s clothing.


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Full Definition of Zero-Rated


Almost all countries apply preferential rates to some goods and services, making them either “zero-rated” or “exempt.” For a “zero-rated good,” the government doesn’t tax its retail sale but allows credits for the value-added tax (VAT) paid on inputs. This reduces the price of a good.

Zero-rated goods are products that are not subject to value-added taxes mainly due to their societal importance or personal necessity. For VAT purposes, these goods are zero-rated and don’t have additional taxes levied on them. Some examples include groceries and goods sold by charities.


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Examples of Zero-Rated in a sentence


Oranges are suitable, because they are zero-rated.



Cite Term


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https://payrollheaven.com/define/zero-rated/
Modern Language Association (MLA):
Zero-Rated. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 22, 2020 https://payrollheaven.com/define/zero-rated/.
Chicago Manual of Style (CMS):
Zero-Rated. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/zero-rated/ (accessed: February 22, 2020).
American Psychological Association (APA):
Zero-Rated. PayrollHeaven.com. Retrieved February 22, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/zero-rated/

Definition Sources


Definitions for Zero-Rated are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th December 2018.