Complex Made Simple

Still confused about VAT exempt and zero rate? It could cost you!

Find below a VAT public awareness infographic.

1- Supplies and Services Subject to Zero-Rate Tax

2- Supplies and Services Exempt from Tax

What is Zero Rate?

If you make Supplies at the xero rate, this means that goods are still taxable but the rate of VAT is 0%.

You will need to record any 0-rate supplies in your VAT account and report them on your tax returns

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What is exempt?

Exempt supplies are not taxable supplies for VAT purposes.

VAT is not charged on exempt supplies and the supplier cannot recover any VAT on expenses incurred in making those exempt supplies.

Exemptions will also be strictly applied as they are an exception to the normal rule that VAT should be charged.