What are zero-rated supplies?
These are taxable supplies on which the current VAT rate is 0 per cent. Although these supplies are rated at 0 per cent, they are classed as VAT rated. They are not the same as exempt supplies. Examples of zero-rated goods includes most food (but not meals in restaurants or cafes and hot take-away food and drink), books, newspapers, young children’s clothing and shoes, exported goods, most prescriptions, most public transport services). Please note that this list is not exhaustive.
