Zero-rated supply

Zero-rated supply means that certain goods or services are sold without any sales tax or value-added tax (VAT) added to the selling price. Imagine you get some candies from the store and you don't have to pay any extra money for taxes, just the amount that the candies cost. That's a zero-rated supply - you don't need to pay any extra tax. However, not all goods and services are zero-rated, some do have taxes added like when you buy toys or clothes, there might be extra tax added to the selling price. The government usually decides which goods and services are zero-rated, depending on their importance or potential impact on people's lives.