zero-rated

adjective

1. denoting goods on which the buyer pays no value-added tax although the seller can claim back any tax he has paid

Example Sentences

VAT is levied at a standard rate of 20% on most goods and services in the UK, unless they are classed as reduced or zero-rated.

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The new finance bill replaces the zero-rated tax provision on essential commodities with tax-exempt status.

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“The fact that a poppadom made to a traditional recipe from gram flour without potato is zero-rated for VAT purposes does not mean that a poppadom made to a traditional recipe which includes potato must also be zero-rated,” the judge said.

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Retailers and brands that backed last year's campaign to make period underwear zero-rated for VAT pledged they would pass on the tax cut in full to customers.

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Food and children's clothes are deemed essentials, and are zero-rated.

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