Zero-Rated Sales is when a sale with no sales tax. i.e. goods are taxable at the rate of 0%. Some examples for such sale is basic groceries, prescription drugs or certain medical devices.

What sales are zero rated?

Zero-rated items are goods on which the Government charge VAT but the rate is currently set to zero. The goods covered by this classification are items such as children's clothes and footwear, water, basic foods, books and newspapers.

What is meant by zero rated sale?

Zero-rated goods are products that are exempt from value-added taxation (VAT). Countries designate products as zero-rated because they are leading contributors to other manufactured goods and a significant component of a broader supply chain.