Zero rated VAT is applied to things like food, children’s clothes, and books etc. Also if selling abroad, say to the US, your goods will be zero rated. If you are VAT registered, you can reclaim the VAT on your overheads and costs related to those zero rated sales – i.e. machines to make children’s clothes. Being VAT exempt means that you can’t claim back VAT on things like rent and health care insurance.
Zero Rated VAT items
30 Aug 2019 | VAT