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zero-rate
(redirected from zero-rating)

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ze·ro-rate (zîr-rt, zr-)
tr.v. ze·ro-rat·ed, ze·ro-rat·ing, ze·ro-rates Chiefly British
To exempt from paying a value-added tax.


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However, in a very similar case involving Pringles Dippers it was decided that the act of dipping was 'further preparation' and therefore the product qualified for zero-rating.
Zero-rating maintenance obligations Schedule VI, Part V (Exports), Subsection 13(a) applies a zero rate to supplies made "to a non-resident person who is not registered under Subdivision d of Division V of Part IX of the Act of tangible personal property, or a service performed in respect of tangible personal or real property, if the property or service is acquired by the person for the purpose of fulfilling an obligation of the person under a warranty.
However, in a similar case with 'dipping chips', it was held that the act of dipping was 'further preparation' because the chips were 'rather bland' otherwise, and therefore the product qualified for zero-rating.
 
 
 
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