Zero-Rated vs Exempt Supplies: Input Tax Recovery in VAT and GST Explained
Zero-rated and exempt supplies both leave the customer paying no VAT or GST; the difference is whether the supplier can recover input tax. EU Articles 168 and 169, UK Schedules 8 and 9, partial exemption with HMRC's worked example, terminology across the EU, UK, South Africa, Australia, Canada, India, the UAE and others, and current changes as at 2026-11-03.