The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the types of goods and services which can be zero-rated for VAT purposes. It also discusses a number of practical points of general interest to businesses which make and receive zero-rated supplies.
A supply which is zero-rated is a taxable supply but taxable at a rate of 0%. The following key consequences therefore follow:
For VAT recovery generally, see the What is input tax? guidance note.
Broadly, supplies may be zero-rated for a number of reasons:
The groups of supplies which are zero-rated under VATA 1994, Sch 8 are summarised in this guidance note.
For the VAT treatment of goods removed from the UK, see the Exporting goods to non-EU countries and Supplies of goods within the EU guidance notes.
Dealings on terminal markets and services performed on warehoused goods are covered in De Voil Indirect Tax Service V4.208 and V4.209.
There are 19 different groups of zero-rated supplies specified in VATA 1994, Sch 8.
A brief overview of each of these groups is provided below.
The most commonly seen groups in VATA 1994, Sch 8 are explained in their
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