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.

What are zero rated exports?

Goods and services that are normally subject to the GST/HST may be untaxed when exported from Canada. In this case, they are referred to as “zero-rated” goods or services.

Are exports zero rated or exempt?

When goods are exported they are 'consumed' outside the UK and to impose VAT on such goods would be contrary to the purpose of the tax. Therefore, the supply of exported goods is zero-rated provided the conditions in this notice are met. A zero-rated VAT supply is one which is subject to VAT but where the VAT is at 0%.