- Zero-rated supplies are goods or services that are taxed at a rate of 0%, meaning no Value Added Tax (VAT) or Goods and Services Tax (GST) is applied to them.
- They are generally considered taxable supplies and include essential items or services such as basic food items, healthcare services, and education services. Input tax paid on goods or services purchased to make the supply is generally considered deductible.
- Examples of zero-rated supplies include basic groceries, prescription drugs, medical devices, and exports. This is distinct from supplies that are exempt from consumption taxes entirely.
Source Fonoa
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