What are zero-rated goods and services?
There are certain goods on which 0% VAT is applied. On such transactions, the end consumer will not pay any tax, and the business owners can reclaim any tax paid on the goods or services. The zero rate applies to goods that are considered basic requirements.
Supplies that are zero-rated are:
- Local transportation
- Real estate (sale of new buildings)
- Basic food items
- Pharmaceuticals and medical supplies
- Propellants such as gas and oil