Is Vehicle Insurance Zero Rated Or Exempt. The goods covered by this classification are items such as children’s clothes and footwear, water, basic foods, books and newspapers. When the retailer fills out the vat returns they can claim the input.
Exempt items are goods on which no vat is paid or charged, but which still need. Some supplies are exempt from the gst/hst. The retailers who sell zero rates goods can recover the vat on the costs that they incurred on any purchases that are directly related to the sales of zero rated goods.