zero-rated goods

Zero-rated goods are products that are taxable at a 0% VAT or sales tax rate. This means that while the sale is technically taxable, no tax is actually charged to the customer. Businesses still need to keep records of these sales and can usually reclaim any VAT they paid on the production or procurement costs. Examples often include basic food items, exports, or certain medical supplies, depending on the country's tax laws. Zero rating helps make essential goods more affordable for consumers and can encourage exports or specific economic activities without completely exempting the products from tax regulation.