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Hi,
Can any one please explain the difference between those two tax systems. Can we claim input tax on zero rated goods?
Hi,
Zero rated goods/services are VATable but the government has decoded to give them a 0% rate. We can therefore reclaim VAT on our purchases because we’ve sold taxable supplies.
Exempt goods are not VATable so there is no VAT ever charged on the service. We cannot therefore reclaim VAT on our purchases.
Thanks
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