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VAT

Forums › ACCA Forums › ACCA TX Taxation Forums › VAT

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by mrjonbain.
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  • May 16, 2016 at 4:09 pm #315345
    sahalacca
    Participant
    • Topics: 17
    • Replies: 3
    • ☆

    What is the difference between zero rated and exempt rates

    May 16, 2016 at 5:15 pm #315348
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2591
    • ☆☆☆☆☆

    Basically, it comes down the ability to reclaim VAT.A business supplying zero rated products or services will be able to reclaim VAT on goods and services it uses as inputs to its business.If it is supplying exempt goods or services it will not be able to undertake this process.This is the main difference between exempt supplies and zero rated supplies.

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