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Which of the Following Statements Related to Exempt and Zero-Rated

Question 59

Multiple Choice

Which of the following statements related to exempt and zero-rated supplies is correct?

A) Both zero-rated and exempt supplies are taxable at 0.0 percent. Expenditures related to zero-rated supplies are eligible for input tax credits and those related to exempt supplies are not.
B) Zero-rated supplies are taxable at 0.0 percent, while exempt supplies are not taxable. Expenditures related to both zero-rated and exempt supplies are eligible for input tax credits.
C) Zero-rated supplies are taxable at 0.0 percent, while exempt supplies are not taxable. Expenditures related to zero-rated supplies are eligible for input tax credits and those related to exempt supplies are not.
D) Both zero-rated and exempt supplies are taxable at 0.0 percent. Neither expenditures related to zero-rated supplies nor those related to exempt supplies are eligible for input tax credits.

Correct Answer: