VAT General Principles
Input VAT is the value added tax added to the price of purchased goods or services. The buyer can deduct the amount of VAT paid, If the buyer is registered with the tax authority.
Output VAT is the value added tax calculated and charged on the sales of goods and services.
An exempt supply is a supply on which VAT is not charged and for which the related input VAT is not deductible.
A zero-rated supply is a taxable supply on which VAT is charged at 0% and for which the related input VAT is deductible.
Standard Rate Supply
A taxable supply at the Standard Rate is a supply on which VAT is charged at 5% and for which the related input VAT is deductible. All items which are not coming under both exempted category, as well as zero-rated category, are coming under standard rated supplies.