The following infographic provides guidance on zero-rated and exempt supplies.
It says that suppliers do not charge tax on a zero-rated or exempt supply.
“If you make supplies at the zero rate, this means that the goods are still VAT taxable but the rate of VAT is 0 per cent,” it says. It clarifies that zero-rated supplies still need to be recorded in VAT account and suppliers need to report them on their tax return.
The infographic also provides guidance about who needs to register in VAT.
Source: Federal Tax Authority