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by eoin_murphy 5306 days ago
Technically, it is not VAT Free. It's rather that the rate of VAT is 0%.

Effectively the same I know...

1 comments

Not the same. Business that sell VAT 0% items (zero-rated items) can still deduct VAT on supplies, whilst providers of VAT exempt goods can't claim back VAT on supplies.

For example, admission to a charitable event is VAT exempt in the UK, while goods sold at a charity shop are zero-rated.

http://www.hmrc.gov.uk/vat/forms-rates/rates/goods-services....