Tax VAT Point

VAT & SD Act 2012

Section 21 - Zero-rated supply

(as updated till Finance Ordinance 2025)

(1) Notwithstanding anything contained in this Act‚ in cases of the following supplies, VAT rate shall be zero‚ namely:-

(a) any supply specified in section 22, 23 and 24; or

(b) right to receive zero-rated supply or supply related to an option to buy or sell in future.

(2) If any supply is both exempted and zero-rated, the supply shall not be exempted but shall be zero-rated under this sub-section.

Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.

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