Sales Tax Sixth Schedule – Exempt supplies
Supplies on which no sales tax is charged. Input tax on related purchases cannot be adjusted or refunded.
Who it applies to
Suppliers and importers of the exempt goods listed (with their conditions)
Rates and limits
| Item | Rate / rule |
|---|---|
| Output tax | None |
| Input tax | Not adjustable against exempt supplies; apportioned where you make both taxable and exempt supplies (s.8(2)) |
| Typical cases | Basic and unprocessed food items, specified medical goods and equipment, books, and supplies under specified programmes |
| Conditions | Many entries apply only to specified persons, uses or certificates |
How it works in practice
If you make both taxable and exempt supplies, input tax is split in proportion to the value of supplies. Exemption can make an item costlier down the chain because the input tax becomes a cost.