Glossary
Zero-rated supply
A zero-rated supply is taxed at 0%, so no GST/HST is charged to the customer, yet the supplier can still claim input tax credits on the purchases behind it, which is what sets it apart from an exempt supply. Basic groceries and most exports are the common examples. Because the tax rate is 0% rather than an exclusion from the tax base, a zero-rated sale still counts as a taxable supply for registration purposes. Our GST/HST registration guide explains how these sales count toward the small supplier threshold.
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