Zero Rated VAT
Some merchandises do not have VAT (Value Added Tax) and these are known as zero rated goods, because they are taxed at 0%. (Note that this is not the same thing as being exempt from VAT). Things that are deemed to be necessary for day-to-day life are zero rated, for instance, and some exports are also zero rated.
Most merchandise already has VAT factored into the price, so you wouldn’t particularly notice a zero rated product anyway unless you are self-employed and can claim back VAT.
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