VAT – What’s the difference between zero rated and exempt items?

Updated on July 20, 2022

These are goods on which the Government charges VAT, although the rate is now nil. Items like children’s clothing and footwear, drinking water, staple foods, and books and newspapers fall under this category.

Goods that do not need to be included in a company’s VAT return are known as “exempt items.” In this category, you’ll find things like land, postal services, healthcare, and gambling.

 

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