GST- ZERO-RATED AND EXEMPT SUPPLIES 

 

 

GST - ZERO RATED SUPPLIES

Goods and Service Tax is calculated at the rate of 0% rather than the standard rate for some supplies.    The 0% rate appies to supplies of:

 
exported goods
exported services
goods situated overseas
taxable activities disposed of as going concerns
newly refined precious metal
certain supplies in respect of which excise duty and petroleum duty are payable.

Zero-rating only applies if the supply would otherwise be taxable at the standard rate.  Supplies which are taxed at either the standard rate or 0% are termed "taxable supplies"

 

GST - EXEMPT SUPPLIES   

Exempt Supplies are expressly excluded from GST.   The following are exempt:

 
supplies of financial services
supplies made by a non-profit body of donated goods and services
supplies of residential accommodation, including supplies of leasehold land used for that purpose
supplies of fine metal (other than those that have been zero-rated)
the sale of a house, or the reversionary interest in fee simple estate of leasehold land, which has been used by the same person in the five years previous to the sale exclusively for the supply of residential accommodation
penalty or default interest

 

 

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