Glossary
Zero-rated
A zero-rated item is taxed at zero percent, but you still record it and can still deduct the tax on its inputs.
What it means for a shop owner
It differs from exempt. With zero-rated you recover the input tax, and with exempt you do not. Which goods qualify is set by your country law.
A worked example
You sell for 1000 at zero tax and your input tax was 40. You recover 40 from the authority.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes