[Question] Municipal Rates (Property Rates & Taxes) - Zero-Rated Supply

[Rita opperman]

Hi,

I know that municipal rates charged by a municipality is deemed a zero rated supply.

When our company is charged monthly for our office rental, Refuse removal and Rates and taxes by the landlord, office rental and refuse removal are obviously levied at 15%. The rates and taxes portion does not attract 15% VAT.

Should I classify it as zero rated or exempt? I think zero rated? (I have recently made a mistake, and am now doubting every transaction I process...)

[Andromeda]

It is zero rated

[Rita opperman]

Thanks Andromeda, I shouldn't doubt myself ...