Question content area top

Part $1$

What is the difference between$$ zero$-$rated supplies and$$ tax$-$exempt supplies?

Question content area bottom

Part $1$

A$.$

$$Tax$-$exempt supplies are eligible for input tax$$ credits, whereas$$ zero$-$rated supplies are not.

B$.$

$$Zero$-$rated supplies have a tax rate of zero for BOTH GST and$$ HST$,$ whereas$$ tax$-$exempt supplies are not necessarily exempt from both.

C$.$

$$Zero$-$rated supplies are eligible for input tax$$ credits, whereas$$ tax$-$exempt supplies are not.

D$.$

$$Tax$-$exempt supplies are exempt from BOTH GST and$$ HST$,$ whereas$$ zero$-$rated supplies are not.